investment climate in the czech republic · ╌great geographical location ╌ great access to both...
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Investment Climate in the Czech Republic
The Content of Slideshow
Czech Republic - Basic Data Investment Climate in the Czech Republic FDI from Luxembourg to the Czech Republic
Population (2015) 10.5 million Labour force (2015) 5.3 million Unemployment (Actual for: Aug 2015) 6.3% GDP p.c. in USD (PPP) (2014) 28 466 GDP growth (2014) 2.0% GDP growth (2015*) 4.4% Annual inflation (August 2015) 0.5% Average monthly wage (March 2015) € 997 $ 1, 054 Export destinations (2014) Germany (32.0%) Slovak Rep. (8.3%) Poland (5.9%)
Source: Czech Statistical Office 2015, Czech Ministry of Finance April 2015, IMF 2015
* current
Czech Republic: Basic Data
Basic Economic Indicators
**Forecast
Source: Ministry of Finance. Macroeconomic Forecast. April 2015
CEE Comparison of Outlook for Year 2015:
Key Performance Indicators Czech Republic
Slovak Republic Poland Hungary
Population (mil.) 10.5 5.4 38.5 9.9
GDP (%) 2.5 2.7 3.3 2.3
GDP p.c. in USD (Current Prices) 19,800 19,030 15,400 13,440
Unemployement (%) 6.0 13.2 9.5 7.8
Total investment (GDP %) 22.7 19.0 21.4 19.4
General Gov. Gross Debt (GDP %) 44.4 55.7 49.0 79.2
Source: IMF 2015 (World Economic Outlook Database)
Total Expenditure on R&D Percentage of GDP
Source: Eurostat, 2015
Location and Infrastructure
╌ Great geographical location
╌ Great access to both emerging eastern as well as established western markets
╌ Advanced infrastructure – densest railway network in CEE, complementary highways
Source: Road and Motorway Directorate of the Czech Republic, 2014, Czech Airport Authority, 2014 Source: CzechInvest 2015
Main Universities 2014/2015
CZECH REPUBLIC Students: 347,339 Graduates: 88,146
UJEP Usti nad Labem Students: 9,143 Graduates: 1,850
ZCU Plzen Students: 12,438 Graduates: 3,155
JU Ceske Budejovice Students: 11,486 Graduates: 3,007
TU Liberec Students: 7,232 Graduates: 1,673 University
of Hradec Kralove Students: 7,909 Graduates: 2,036
University of Pardubice Students: 9,737 Graduates: 1,968
University of Tomas Bata In Zlin Students: 10,167 Graduates: 3,096
Palacky University Olomouc Students: 21,063 Graduates: 4,760
OU Ostrava Students: 9,843 Graduates: 2,653
VSB-TU Ostrava Students: 17,322 Graduates: 4,551
Masaryk University Students: 34,822 Graduates: 8,909
VUT Brno Students: 21,416 Graduates: 5,637
Czech Technical University, Prague Students: 20,866 Graduates: 4,845
University of Life Sciences, Prague Students: 20,438 Graduates: 5,635
University of Economics, Prague Students: 16,385 Graduates: 4,668
Charles University in Prague Students: 47,798 Graduates: 8,577
Source: Ministry of Education, Youth and Sports , 2015
╌ Creative, innovative, skilled and experienced labour force
╌ Lower costs compared to Western Economies
╌ Steady inflow of new graduates into the labour market
Favourable Labour Costs
Average hourly wages (EUR) in 2014 Number of students and graduates at Czech technical Universities
Country EUR
Germany 24.4
Austria 23.2
France 23.1
EU-28 18.6
United Kingdom 18.6
Czech Republic 6.9
Source: CzechInvest, 2015, Eurostat 2015
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students graduates
Taxation in the Czech Republic Corporate income tax 19%
Personal income tax 15%
Withholding tax 15% (standard rate, may be modified
by Double Tax Treaties)
Value-added tax standard 21%, reduced 15% and lowered 10%
Real estate tax rates vary by type, location and purpose of use
Real estate transfer tax 4% (flat rate)
Road tax rates vary by engine capacity (passenger cars) or weight
and number of axles (other commercial vehicles)
Excise tax on gasoline, alcohol and tobacco only
Energy tax on electricity, natural and other gases, and solid fuels
Source: PricewaterhouseCoopers, 2015
Investment Risk Rating
COUNTRY STANDARD
AND POOR´S
MOODY´S FITCH
Czech Republic AA- A1 A+
Slovakia A A2 A+
Poland A- A2 A-
Bulgaria BBB Baa2 BB+
Hungary BB+ Ba1 BB+
Romania BB+ Baa3 BBB-
Russia BB+ Ba1 BBB-
Note: Foreign Currency Long-Term Sovereign Debt Ratings, 8th July 2015
Source: Czech National Bank, 2015
Rank 2015 (14) Country Score 1 (1) USA 100.000 2 (4) China Hong Kong 96.037 3 (3) Singapore 94.950 4 (2) Switzerland 91.616 5 (7) Canada 90.410
…. 10 (6) Germany 85.637
29 (33) Czech Republic 70.834 33 (38) Poland 68.758 46 (45) Slovak Republic 57.176 48 (48) Hungary 56.996
THE 2015 IMD WORLD COMPETITIVENESS SCOREBOARD Czech Republic is at the top of the CEE countries in the competitiveness of the world economies
Source: IMD, World Competitiveness Yearbook, May 2015
Cumulative FDI Inflow by Country 2000 – 2014
Source: Czech National Bank, 2015
Total EUR: 89.03 billion Total USD: 106.01 billion
PRAGUE
CESKE BUDEJOVICE
KARLOVY VARY
PLZEN
USTI NAD LABEM
JIHLAVA
PARDUBICE
BRNO
LIBEREC
HRADEC KRALOVE
ZLIN
OLOMOUC
OSTRAVA
Source: fDi Markets 2015
Selected Luxembourg Investors in the Czech Republic
USTI REGION ArcelorMittal
LIBEREC REGION International Automotive Components
HRADEC KRÁLOVÉ REGION HB Reavis Takko Holding
SOUTH MORAVIA REGION Pegas Nonwovens Holding HB Reavis
MORAVIA-SILESIA REGION ArcelorMittal
PRAHA REGION ORCO Property Group HB Reavis Colt Group Transcom Worldwide Regus
PLZEN REGION International Automotive Components
Reasons to Invest in the Czech Republic
Outstanding Geographical Location
Advanced Transport Infrastructure
Transparent Investment Incentives
Highly Skilled and Educated Labour Force
Well Developed Supplier Base
Attractive Living Environment
CzechInvest’s Services
Source: Czech government, 2015
