Czech Republic

Situated at the heart of Europe, the Czech Republic is one of the region’s most prosperous and industrialized economies. With a transparent regulatory framework, a robust banking system, and remarkably low unemployment rates among its well-educated workforce, this country of approximately 11 million people is a preferred destination for foreign direct investment (FDI) in Central Europe. Its open economy relies heavily on exports, primarily from the automotive and engineering sectors, which constitute over 70% of its GDP. Additionally, the government’s focus on diversifying investments into research and development (R&D) and innovative technologies such as biotechnology, cybersecurity and AI, enhance the country’s competitiveness.

However, the Czech Republic also faces challenges. While a member of the European Union, it has yet to adopt the euro. Inadequate logistics and transport infrastructure further hinder connectivity with the rest of the continent and limit its growth potential. Its heavy dependence on European demand, especially from Germany, an aging population and a shortage of skilled labor pose additional concerns.