How Diversified Is Czech Export? New Study Brings Key Findings and Recommendations

The Association for International Affairs (AMO), in cooperation with the Confederation of Industry of the Czech Republic, has presented a new study on the diversification of Czech exports. The study is based on a comparison of three selected EU countries and a dedicated survey conducted among member companies of the Confederation.

The analysis provides a detailed overview of the state of Czech exports, comparing them with relevant EU countries like Denmark, Poland, and Austria, and offers recommendations for public administration, the private sector, and employers’ associations for the future development of Czech export policy. 

Key findings: An open economy with high export concentration

The study shows that Czech exports are still strongly oriented toward the European Union. This provides Czech companies with a stable environment and access to the single market but also creates dependence on a few main destination countries, especially Germany, similarly to the other countries compared. Such concentration makes the economy more exposed to shifts in the EU economy and to global trade shocks.

The analysis also highlights that non EU markets are gaining importance and can offer new room for Czech export growth. These include fast growing economies with demand for European technologies or countries with natural resources needed for Europe’s industrial transformation. The Confederation has, for instance, long pushed for ratifying the EU free trade agreement with the South American bloc Mercosur, which is due for another key vote in the European parliament soon. 

Business perspective: Barriers and potential for expansion beyond the EU

According to the survey, Czech exporting firms value the stability of the European market but also recognize opportunities in markets outside the EU. The most frequently cited barriers to entering more distant markets include administrative and regulatory requirements, logistics, cultural differences, and higher commercial risks.

At the same time, a clear majority of companies are considering further expansion and see markets beyond Europe as promising if provided with sufficient institutional support.

Comparison with other EU member states: Different models, common success factors

The study draws on examples from Denmark, Austria, and Poland, three EU countries that have long invested in export diversification and built advanced systems of economic diplomacy and state support for companies.
While their approaches differ, they share several common features:

Clearly defined territorial and sectoral policy priorities.

• Close integration between diplomacy and support agencies.
• Strong focus on services for small and medium sized enterprises (SMEs).
• Long term programs with stable funding.

What the Study recommends for Czechia

1) Strengthening economic diplomacy

• Direct resources on a smaller number of clearly defined priority markets.
• Increase the involvement of economic diplomats in direct cooperation with companies.
• Expand local expert and trade contact networks, emphasizing long term presence and coordination with business missions.

2) Better coordination and clarity of the export support system

• Simplify company orientation within the range of available services.
• Introduce more unified communication toward the business community.
• Strengthen coordination among export-support institutions, ministries (through closer inter ministerial cooperation), and business associations.

3) Support for small and medium sized enterprises (SMEs)

• Expand programs focused on market entry, marketing, legal advice, and verification of business partners.
• Support the establishment of branches and service centres abroad.
• Facilitate access to export instruments, including export financing.

4) More effective use of European instruments

• Better integrate Czech firms into EU initiatives supporting infrastructure, raw materials, and strategic partnerships.
• Actively support new EU trade agreements that open additional markets.
• Emphasize the competitive participation of Czech companies in the Global Gateway initiative.

5) Balanced diversification of both exports and imports

• Identify key inputs where Czechia shows high dependency.
• Foster cooperation with countries offering critical raw materials and energy resources.
• Reflect these dependencies when planning economic diplomacy.

Next steps of the Confederation of Industry

The Confederation of Industry of the Czech Republic plans to work with government representatives and export support institutions to put the recommendations into practice. Export diversification, stronger economic diplomacy, development cooperation, and modern export financing remain among its long term priorities and are key to keeping the Czech export oriented economy stable and growing.