Export Britain

Czech Republic

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Ease of trading across borders

Importing a standard container of goods into Czech Republic requires:

Introduction

The Czech Republic is one of the leading economies in Central and Eastern Europe with solid GDP growth and one of the lowest unemployment rates in Europe. The World Economic Forum’s 2016-2017 Global Competitiveness Report ranks the Czech Republic 31st among 138 world economies in terms of competitiveness. With regular ights to Prague from regional UK airports, the Czech Republic is a very accessible export destination.

Economic snapshot (% annual growth rate)

	2015	2016	2017-20
GDP	4.5	2.5	2.4
Export of goods and services	7.7	6.7	4.5
Import of goods and services	8.2	6.1	5.2
Inflation	0.3	0.6	2.0
Current account balance (% of GDP)	0.9	1.5	0.4
Population	0.2	0.2	0.2
Source: IMF, World Economic Outlook Database, October 2016

Economic outlook

The Czech economy grew by a surprisingly strong 1.6% in Q4 2013. The statistical office indicated that investment was the main driver of growth. After a long period of retrenchment, Czech firms have started to raise their investment in the light of an improving external background, reflecting both rising foreign demand and a weakening exchange rate. GDP is expected to grow at a solid pace through 2014, reflecting both gradually rising domestic and external demand. 

Trade outlook

A pick-up in activity in the country’s main trading partners should lead to a rise in exports in 2014. The largest trade partners for the Czech Republic include Germany, Poland, France and the UK. To ensure economic growth, Czech Republic needs to expand widely its foreign trade, not only in the EU but also in the rest of the world.  Czech Republic’s exports to Asia were at almost constant rates, around 3 to 4% of total exports. Czech Republic’s trade structure has transformed, with trading with Asia becoming more prominent. 

SWOT analysis

Strengths Highly educated and ambitious workforce. Strong demand from local distributors for innovative, value-added British products. Government budget for 2016 ended with a surplus of £2 billion.	Weaknesses Need for diversifying away from manufacturing and towards high-tech.
Opportunities Favourable labour costs and price stability. Foreign investment incentives.	Threats Rapidly ageing population. Sensitive to changes in the economic performance of its main export markets.

Opportunities for UK businesses

Czech Republic offers UK businesses a sophisticated market where English is widely spoken and where British products are well received. Czech Republic is located at the heart of Europe offering very good links to neighbouring markets. Significant opportunities for UK companies to enter manufacturing supply chains, especially in the automotive and electronics sector. Niche food & drink as well as other consumer products from UK are very popular. 

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