Export remains the driving force of Czech economy
Lack of investment, access to financement and markets, energy prices and need of structural reforms are the main problems linked to the competitiveness.
In its annual report on competitiveness, published on 11th September 2014, the EU Commission states that the Czech Republic is on the way to overcome the period of negative growth. Manufacturing remains one of the most important branches of the Czech economy representing 24,7 percent of the value added.
Although in 2012, the labour productivity decreased in comparison to 2008, in manufacturing it has recorded a growth. Share of exports in GDP amounted to 78,6 percent in 2013, while in 2008, it was only 64,4 percent. In 2013, 80 percent of Czech export was directed to EU, remaining the driving force of the Czech economy. The import from EU represented 68 percent of the overall figures.
On the contrary to the good results of the Czech export, as the EU Commission stressed, science and research are lagging, infrastructure is neglected, the productivity is low, energy prices are high, skill doesn’t react to the labour market, administration is ineffective and fears of corruption remain high.
While the private sphere investment in science and research rate increased to 1,01 percent in 2012, the innovation in the Czech Republic stays under the EU average. And although the number of people aged 30-34 with a tertiary education raised, in 2013 it was still well below the EU average.
Energy intensity decreased in the Czech Republic in the last few years, but it remains to be high in comparison to other EU countries. The high energy prices are still, in the opinion of many Czech companies, the main obstacle to business.
In generall, the Czech Republic faces the same problems in enhancing its competitiveness as the other EU countries: it is the lack of investment, insufficient access to financement and markets, high energy prices and bad need of structural reforms.
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section European Commission