Czechia must diversify its economy

According to European Country Report must Czechia diversify its economy, increase productivity and stay attractive to foreign investors.

On 26 February 2020, the European Commission addressed its regular country reports to the member countries. According to report, Czechia’s ability to diversify its economy will be crucial for maintaining a solid catch-up in living standards. The industry-intensive economy, underpinned by trade openness and foreign investment has allowed Czechia to steadily catch up with the rest of the EU. However, this growth model may have reached its limits, the European Commission said.

The labour market in Czechia remains strong, but labour and skills shortages and continuous increases in unit labour costs may hinder further growth. The employment rate reached 80% and unemployment is at a record low. However, persistent labour shortages are a cause for concern.

Read: 2020 European Semester: Country Report Czechia

section European Commission
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