Summary of the Czech Republic’s Key Competitive Advantages
- Location in the centre of Europe, gateway to both eastern and western markets, less than two hours by air from most European destinations
- Creative, experienced and internationalized professionals at lower costs
- High degree of entrepreneurship and good conditions for doing business (above average within EU27)
- Regulatory and patent environment in accordance with EU standards
- One of the world’s most attractive places to live
- GDP per person by purchasing power parity - the highest in Central and Eastern Europe
- Well-developed infrastructure
CZECH REPUBLIC BASIC DATA 2013
The Czech Republic is a democratic country situated in the heart of Central Europe. It is a landlocked country which lays 326 km from the Baltic sea and 322 km from the Adriatic sea.
Area (km2): 78 865
Population: 10.5 million
Labour force: 5.3%
Official Language: Czech
Official Currency: CZK
Government: Parliamentary democracy
Neighbours: Germany, Austria, Slovakia, Poland
Member of: OECD, EU, WTO, NATO, IMF, Schengen area
GDP growth rate: - 1.5 %
GDP per CAPITA: € 20,200
Annual inflation rate: 2.3 %
Unemployment rate: 7.5%
- 2 week repo rate: 0.05 %
- Discount rate: 0.05%
- Lombard rate: 0.25%,
Average monthly wage: €934, $1,232
- Germany (31.4%)
- Slovak Republic (9%)
- Poland (6.1%)
Main foreign exchange rates:
- EUR – CZK 27.370
- USD – CZK 19.969
- GBP – CZK 33.307
Source: Czech Statistical Office 2013, Czech Ministry of Finance, Czech National October 2013
Political System and Foreign Relations
The Czech Republic is a parliamentary democracy, with separate legislative, executive and judicial powers. The parliament has two chambers (Chamber of Deputies and the Senate). The president is elected by the Parliament for a five-year term. Milos Zeman was elected as the president of the Czech Republic on March 8, 2013. The Prime Minister is appointed by the President, based on parliamentary election results. As the Czech Republic is a parliamentary democracy, the bulk of political power lies with the Prime Minister.
Due to the accession of the Czech Republic to the European Union the Czech legal system has been going through a continuous process of harmonizing with the EU legal environment and is expected to develop in line with the EU requirements. For business purposes there are two main Codes, which should be taken into account when doing business in the Czech Republic. The Commercial Code and the Trade Act govern forms of business entities, rights and obligations of persons carrying out business activities, commercial commitments, and other relationships related to domestic as well as foreign trade activitities.
As a member of the European Union, the Czech Republic is bound by the laws of the EU with regard to trade, finance and employment. The Czech Republic is also a member of the OECD. Further the country is integrated in the WTO and the IMF. To ensure protection of foreign investments in the country, the Czech Republic is also party to the Multilateral Investment Guarantee Agency (MIGA).
As signatory to the General Copyright Treaty, the country is obliged to protect the copyright, patents and trademarks of businesses and individuals.