I thought that without Russian tourists, Prague was empty, and the Czech economy was about to collapse. In fact, the photographs on the Charles Bridge were taken early in the morning, when tourists had not yet woken up and local residents had just gone to work. But is the Czech economy really so dependent on tourism, while local residents only live off the sale of magnets, souvenirs and beer? You can learn about this from this post.
Statistics
- The Czech Republic's GDP is $325 billion (50th place in the world), per capita this amount is $31,000 (38th place) with a population of only 10.5 million people.
- Currently, the Czech Republic is one of the most developed industrial countries in central and eastern Europe. This is a self-sufficient country where all sectors of the economy are well developed.
- Now about the numbers. In the first quarter of 2015, the country's economy grew by 4%, this is the highest figure among EU countries.
- By the way, about sanctions: there is an opinion that due to sanctions, EU countries, including the Czech Republic, are losing a lot of money, especially in agriculture. But if we look at the country's economic sectors, agriculture accounts for only 1.8% of GDP, industry 39.6%, and the service sector 58.6%.
- Main exporting countries: Germany 31.8%, Slovakia 9.1%, Poland 6.1%, France 5.1%, Great Britain 4.9%, Austria 4.7%.
- Main importing countries: Germany 30.3%, Poland 8.1%, Slovakia 7.2%, China 5.8%, Netherlands 5.5%, Russia 5.1%, Austria 4.1%.
- Working-age population: 5.4 million people, unemployment rate 6.7%.
Services sector
The service sector employs a large number of the country's working population, because this sector of the economy accounts for almost 60% of GDP. Most people work in banking, telecommunications companies and retail trade. Tesco, Kaufland, Globus, BILLA, Ahold are not only the largest companies in the country, but also the largest employers. Naturally, everyone knows these supermarket chains.
The Czech Republic has created excellent conditions for attracting foreign IT companies, including good tax conditions, qualified personnel, and a convenient geographical location of the country. For example, there are large offices of Microsoft, IBM, HP, Cisco, SAP. Amazon is currently building two large warehouses and a distribution center. By the way, when applying for a job in these companies it is very...
Many people also work in transport companies, especially in the Czech Railways.
The main employer in the service sector is the Czech Post, which employs more than 30 thousand workers who service more than 3,000 post offices.
Tourism
Let's start with the fact that last year 2 times less Russian tourists came to the Czech Republic, but the total number of tourists increased by 3% and reached 8 million people, and income in the tourism sector increased by about 5 or 6%, exact figures I don't remember anymore. One might say, a stream of tourists from Asia, especially from South Korea and China, has poured into the country; citizens of these countries, like Russians, love to spend money on vacation and stay in expensive hotels. Companies earned 140 billion CZK (5 billion Euros) from tourists alone; of course, compared to the country’s GDP, this amount is small, but for small businesses this is a huge amount of money.
As for domestic tourism, Czechs have begun to prefer holidays abroad more often, but they do not forget about local tourism, and over the year 15 million Czechs stayed in hotels in the country.
Industry
Most of the Czech economy is based on industry. As I already said, industry accounts for 39.6% of the country’s GDP, this is the highest figure among the countries of the European Union. Mechanical engineering, iron and steel production, metalworking, chemical production, electronics, transport equipment, textiles, glass, paper production, brewing, porcelain production, tire production, machine tool building, ceramics, and pharmaceutical production are well developed here. If you list all the Czech factories that produce a wide variety of products, the post will turn out to be simply gigantic.
A short list of the country's largest enterprises: AGROFERT (a holding company specializing in agriculture, food and chemical industries), ŠKODA AUTO (production of cars, trains), ČEZ (energy), UNIPETROL (oil refining and petrochemicals), RWE Supply & Trading CZ, Hyundai Motor Manufacturing Czech s.r.o. (automotive production), ČEPRO, Continental Barum (tire production).
Agriculture
Enterprises involved in agriculture produce sugar beets, wheat, hops, potatoes, barley, corn, and canola oil. In general, all the fruits, vegetables and berries necessary for local residents are grown here, which fully supply the local market: potatoes, cabbage, plums, cherries, grapes, apples.
A huge number of farms (approximately 1200) are scattered throughout the country, for example, producing honey, dairy products, breeding fish, livestock, and chickens. Czechs are very sensitive to products and will not buy rubbery, tasteless vegetables, fruits and meat. Therefore, the stores here have very high quality fresh products.
Energy
Electricity in the Czech Republic is produced from coal and nuclear power plants. There are 2 nuclear power plants in the Czech Republic: Temelin and Dukovany. Part of the energy is produced from renewable sources, approximately 12%, of this 12% hydropower accounts for 60%. The Czech Republic consumes 50 TW per year, but the country produces 60 TW, i.e. Part of the electricity is exported, and the Czech Republic makes good money from this. In addition, Czech companies produce various equipment for the energy sector. And the ENERGO-PRO company is the largest electricity supply company in Eastern Europe, and because of its dominant position, it sometimes faces fines, as was the case in Bulgaria.
I. Main trends
1. The role and place of the national economy in the system of world economic relations
The Czech Republic (CR, Czech Republic) is one of the industrialized countries of Central Europe.
According to the Czech Statistical Office, the country's population is 10,325,941 people, or 0.2% of the total world population and covers an area of 78,866 square meters. km, i.e. 0.05% of the total world territory. The Czech Republic produces about 0.3% of the world's gross output.
The Czech Republic ranks 25th among OECD countries in terms of gross domestic product (GDP) output, and 23rd in terms of its size per capita. In 2007, GDP growth was 6%, mainly due to a 4.7% increase in domestic consumption and a positive balance of foreign trade. The growth of industrial production in the country in 2007 amounted to 8.6%.
The most developed sectors of Czech industry, the state of which determines the overall level of the country's economic situation, are automotive, mechanical engineering, metallurgy, energy, chemical and light industry.
The Czech Republic's production capacity exceeds the capacity of its domestic market, so a significant part of the country's gross domestic product is export-oriented. At the same time, Czech industry began to focus on the production of goods that do not require large electricity consumption. At the same time, due to the lack of a sufficient mineral resource base in the country, many types of energy and raw materials have to be imported, which determines the high degree of dependence of the Czech economy on foreign economic factors.
The Czech Republic's share in world foreign trade is 0.5% in exports and 0.6% in imports (34 and 32 places, respectively). Among countries with economies in transition (CEE, the Baltic countries and the CIS), the Czech Republic is in third place in terms of trade turnover, second only to Russia and Poland. At the same time, during 2007 the country became less competitive.
The main economic partners of the Czech Republic are the countries of the European Union, which account for 85.2% of Czech exports and 70.8% of the country's imports.
The Czech Republic is a member of 62 international economic and four financial organizations.
In terms of living standards, the Czech Republic is approaching the economically developed countries of the European Union. The average income per person per month is 10,300 crowns (about 500 US dollars).
2. Main trends and prospects for the influence of the development of the world economy on the political and economic situation in the Czech Republic
The main external factors that influenced the economic situation in the Czech Republic in 2007 were:
a) the continuing rise in world energy prices
As a result of the continued rise in energy prices in the Czech Republic in 2007, the cost of manufactured products increased, as well as prices for petroleum products, electricity, transport and utilities for the population. Since the beginning of 2008, the cost of electricity has increased by 9.1%, gas - by 7.5%, heating - by 10.3%, public transport - by 30%, gasoline - by 6-9%.
b) consequences of industrial privatization
In 2007, Czech companies paid the highest dividends in history - about 150 billion crowns (about 7.5 billion US dollars), which is 10% more than in the previous year. More than two-thirds of this volume (more than 5 billion US dollars) was transferred to the accounts of foreign investors. At the same time, the increased demand for credit and investment resources on the world market and the practical completion of privatization in the Czech Republic influenced the activity of foreign investors in the Czech Republic. The volume of foreign direct investment in 2007 decreased by 8% compared to the previous year and amounted to 7.1 billion US dollars. According to forecasts of the Czech National Bank, this trend will continue in the future, which may affect the financial situation in the country. According to the World Bank, business conditions in the Czech Republic have deteriorated. According to this indicator, the country currently ranks 56th in the world, which is four places less than the previous year. In terms of corruption, the Czech Republic ranks 41st in the world. The country lacks an effective mechanism for monitoring government contracts financed from the budget, and investigations into corruption cases are often delayed.
c) the situation on world financial and stock markets
During 2007, the Czech crown continued to appreciate steadily against both the euro and the US dollar, creating unfavorable conditions for Czech exporters. The recession in the American economy that began in 2007 and the associated fall in quotations on the world's major stock exchanges at the end of the year also have an impact on the economic situation in the country, which supplies more than 91% of its export products to the United States and other market economies.
d) membership of the Czech Republic in the European Union
The Czech Republic's membership in the EU has an impact on the structural restructuring of the country's economy, the creation of a competitive environment and the development of small and medium-sized businesses. This is greatly facilitated by the possibility of attracting financial resources from EU structural funds. At the same time, a significant number of Czech citizens express their dissatisfaction with the Czech Republic's membership in the European Union. According to the traditional Eurobarometer survey conducted in mid-2007, only 46% of Czechs have a positive assessment of the country's membership in the EU, which is five percent less than in the previous year.
II. Assessment of the state of the national economy and prospects for its development
1. General characteristics
The socio-economic situation of the Czech Republic in 2007 remained stable. The gross domestic product (GDP) amounted to CZK 3,396.3 billion (USD 163.3 billion) in 2007, an increase of 6% compared to the same period in 2006. At the same time, the inflation rate increased by 0.3 percentage points compared to 2006, and unemployment decreased by 1.8 percentage points.
The industrial production growth index in 2007 was 8.6%. It should be noted that continuous growth in industrial production has continued in the Czech Republic for 63 months since 2002.
The production of vehicles and equipment, electrical appliances and optical instruments (11.2%) and the production of machine tools and tools (11.8%) grew at the highest rates (21.2%).
In 2007 There was a significant (6.8%) increase in construction volumes. Construction permits were issued to 10,126 developers. The approximate cost of all construction projects was CZK 30.1 billion (USD 1.4 billion).
The volume of foreign direct investment in the Czech economy in 2007 amounted to 7.1 billion US dollars, which is 0.6 billion US dollars less than in 2006.
In 2007, the inflation rate in the Czech Republic was 2.8%. Food products have risen in price the most, namely fruits, baked goods, eggs and cheese. Prices for bread increased in 2007 by 37%, poultry meat - by 36%, fruits - by 31%, vegetables, milk and dairy products - by 27%, butter - by 24%, beef - by 3%. Since January 2008, prices for electricity have increased by 9.1%, for heating by 10.3%, for water by 8% and for gas by 7.5%.
According to experts, the introduction of an environmental tax and an increase in the minimum value added tax rate from 5% to 9% will have a negative impact on the growth of inflation in the country.
According to preliminary data from the Ministry of Finance of the Czech Republic, at the end of 2007, the revenue side of the Czech budget amounted to 1025.9 billion Czech crowns (49.3 billion US dollars), the expenditure side - 1092.3 billion Czech crowns (52.5 billion USD), the budget deficit amounted to CZK 66.4 billion (USD 3.1 billion), which is CZK 30.9 billion (USD 1.4 billion) better than 2006 indicators
According to the Government of the Czech Republic, the Czech Republic could have a balanced budget by 2014. The condition is the completion of at least two stages of public finance reform. The first of them has already been approved by the Parliament of the Chechen Republic. Within its framework, a single tax on personal income will be introduced and corporate taxation will be reduced. The goal of this stage is to reduce the state budget deficit. At the second stage, from 2008 to 2010, the government plans to implement reforms in the social, pension and healthcare sectors. By 2010, the deficit could be reduced to 2% of GDP. The third stage is planned from 2010 to 2014. The reduction in the state budget deficit is associated with the adoption of the euro. According to the Maastricht criteria, the state budget deficit should not exceed 3% of GDP.
In 2007, there was a significant strengthening of the Czech crown against other currencies.
In the Czech Republic, there is an increasing opinion that if the strengthening of the crown continues at this rate, then economic growth may come to a complete halt.
During 2007, the Czech government repeatedly discussed the country's transition to the euro. There were no official statements from the Government of the Czech Republic on the results of the discussion of this issue, however, according to expert estimates, the Czech Republic will enter the eurozone no earlier than 2013. Until now, 2012 was considered the approximate date for the adoption of the euro in the Czech Republic, but the head of the Czech government Mirek Topolanek stated , that “to introduce the euro by this date, it is necessary to enter into the ERM2 transition system already in 2009, which is unrealistic in a country where neither pension reform nor health care reform has yet been implemented.”
The average level of nominal wages in the Czech Republic in 2007 increased compared to 2006. by 6.2% and amounted to 21,362 Czech crowns (1,027 US dollars), in 2006. The national average salary was CZK 20,207 ($894). At the same time, the average salary of senior employees of ministries and departments of the Czech Republic increased from CZK 46,840 (USD 2,252) in 2006 to CZK 54,915 (USD 2,640) in 2007. Salaries of deputies of the Parliament of the Czech Republic in 2007 amounted to CZK 61,500. CZK ($2,957).
Working conditions in the Czech Republic attracted a significant amount of foreign labor. The number of foreigners legally employed in the Czech Republic in 2007, compared to 2006, increased by 38 thousand and reached 224 thousand people. Most of the workers came from Slovakia (100,000), Ukraine (57,000) and Poland (22,000), as well as from Mongolia and Moldova (5,000 each), Bulgaria (4,000), Romania and Germany (3,000 each), Vietnam, Russia and Great Britain (2,000 each).
According to the forecasts of Czech economists, unemployment in the country will decline by 2009. may reach 5%, which, however, will not allow the Czech Republic to be among the first 5 EU member countries where the unemployment rate is considered the lowest, namely: Denmark, Ireland, Estonia, Holland and Austria.
In 2007, the Government of the Chechen Republic decided to issue long-term government securities with a maturity date of 50 years. On the Czech securities market, government securities previously issued by the Czech government with maturities of 15 and 30 years are currently in circulation for a total amount of approximately $620 million.
According to the Czech National Bank, the main lending rate during 2007. was revised upward three times and by the end of the year amounted to 3.5%.
In 2007, the average increase in prices for consumer goods averaged about 23%. However, for such groups of goods as alcoholic beverages and tobacco, it amounted to 24.5%, and the increase in prices for housing and communal services, including the cost of water, energy and fuel, amounted to an average of 8.9%.
In 2007, the expected increase in the VAT rate on new housing from 5% to 9% (for luxury housing - up to 19%), as well as an increase in interest rates on mortgage loans, revived the entire real estate market in the Czech Republic. Housing prices grew at the fastest pace in Prague, where prices reached an average of 2-2.5 thousand euros per sq. m. meter. Private houses near Prague in 2007 could be purchased at a price of 1.38 thousand euros per sq. m. meter.
The volume of gold and foreign exchange reserves of the Czech Republic in 2007. due to the strengthening of the Czech crown, it increased, compared to 2006, by 3.0 billion US dollars and amounted to 34.4 billion US dollars.
Total public debt in 2007 increased by CZK 89.9 billion (USD 4.32 billion) and amounted to CZK 892.3 billion (USD 42.9 billion). According to the International Monetary Fund, the Czech Republic could return it within 6.5 years.
2. Development of main sectors of the economy
Ø industry
In 2007 The growth rate of industrial output significantly accelerated and amounted to 8.6%. Industrial employment increased by 8%, and labor productivity grew faster than wages.
First of all, the processing industry developed at a high pace, the growth of which was due to an increase in consumer and investment demand, as well as favorable external conditions.
Structural restructuring of industry, aimed at gradually curtailing excess production capacity in the mining, heavy and light industries, and increasing production volumes in industries such as the automotive industry, the production of optical and electrical devices, electronics, rubber, pulp and paper industries, the production of vehicles and auto components , gives positive results.
The growth of industry was facilitated by the increase in output at new production facilities, especially in the automotive industry, electrical engineering, power engineering and related industrial sectors.
The highest growth rates in 2007 were observed in the production of vehicles (21.2%), machine tools and equipment (11.8%), production of electrical and optical instruments (11.2%) and rubber products (13.5%) .
There was a decrease in production compared to 2006 in the textile and clothing industry (-1.8%), as well as in the chemical and pharmaceutical industries (-0.6%).
In 2007 Compared to the previous year, sales in industry increased by 11.3%, the number of employees - by 7.8%, the average monthly salary - nominally by 7.8%, and labor productivity - by 8.7%.
During 2007 In industry, 1,946 enterprises operated under the control of foreign investors, employing about 518,000 people. The sales volume of these enterprises increased by 19% compared to the previous year, and their share in the total amount of industrial products sold was more than 63%. The average monthly salary at enterprises owned by foreign investors was 26,200 crowns per month, which is 7.8% more than for the industry as a whole.
One of the most important sectors of the Czech Republic's economy is the automotive industry, which employs about 110 thousand people. The automotive industry continues to be the most dynamic sector of the Czech economy, driving the entire industry forward. The automobile industry involves related industries: steel, chemicals, rubber and electrical engineering. Currently, the automobile industry produces more than 21% of all industrial products and provides 22% of the country's total exports.
In 2007, the automotive industry of the Czech Republic produced 945 thousand units of vehicles (2006 - 855 thousand), an increase of 10.5%.
Automotive industry products are mainly export-oriented and, above all, to EU countries, where cars, trucks, buses, as well as spare parts and auto accessories are supplied.
The dominant position in the automotive industry is occupied by the production of passenger cars. The main manufacturer of passenger cars is the Skoda Auto company, Mlada Boleslav, part of the German concern Volkswagen and producing 10th of the concern's total production volume.
In 2007, the car plant produced 630 thousand cars (2006 - 556 thousand), which is 13% or 74 thousand more than in 2006. Total sales increased to 10.7 billion US dollars, net profit amounted to 710 million US dollars. Most of the income is obtained through the sale of cars in foreign markets. More than 9% of the total volume of Czech exports is made up of Skoda Auto products.
The production of Skoda family cars in foreign branches has increased. JSC "Skoda Auto" Along with the production of cars in Ukraine, Bosnia, India and Kazakhstan, in 2007 their production began in China and Russia (Kaluga region), where 20,000 Skoda cars have already been assembled.
The company, in an effort to maintain competitiveness, develops new and constantly modernizes existing car models, which are increasingly specialized for the specific needs of customers. In 2007 At the modernized enterprise in Kvasiny, a new model range of the Roomster car (family car) was launched into series and production of Fabia and Octavia cars of an improved modification was organized. The development of the promising Jeti SUV continues, which will appear on the market in the coming years and represents a new generation of car models and a new approach to design. The innovation process at the car plant is associated with the expansion of the Technical Development and Development Center in Mladá Boleslav, in which 50 million US dollars have been invested.
In 2007 The automobile plant of the Toyota Peugeot Citroen consortium (TRS) in Kolin produced 308.5 thousand mini cars (with a design capacity of 300 thousand cars per year), which is 5% more than in 2006. The plant employs 3500 people.
Implementation of an agreement has begun with the South Korean automaker Hyundai on the construction of a new automobile plant in the Czech Republic, with an initial design capacity of 200 thousand cars per year achieved in 2009 (investment volume of about 1 billion euros). At the same time, the Czech Republic will provide investment preferences in the amount of 123 million euros and will contribute to the development of production and transport infrastructure. As a result of the implementation of this project, the Czech Republic will become one of the world's largest manufacturers of passenger cars and will produce more than 1.2 million vehicles per year by 2010.
Bus production in the Czech Republic is represented by two companies: Karosa and SOR Libhavy. Since 2007 Karosa JSC, Vysoké Myto, part of the Irisbus group of the Italian concern Iveco, was renamed into the Iveco Czech Republic company, which began to produce buses under the Irisbus brand. The name "Karosa" was retained only on spare parts for older bus models. The company is the largest bus manufacturer in the Czech Republic, employing more than 1,800 people. The production program includes a full range of buses: city, route and tourist. As part of the Iveco concern, the Czech enterprise is the main base for the production of route buses for supply to the European market. In 2007, 3,357 buses were produced and sold (14% more than in the previous year), including 2,873 buses by Iveco (16% more than last year). Exports account for up to 80% of total sales, mainly to Western European countries (France, Germany and Italy). The importer of Czech buses (30 units) was the Russian company Surgutneftegaz, for which a bus model was supplied, modernized by Czech and Russian specialists and adapted for operation in northern climatic conditions.
The SOR Libhavy company also expanded the production of buses. In 2007, the production of buses at the enterprise increased by 2% and amounted to 418 units.
The only manufacturer of heavy trucks in the Czech Republic is the Tatra automobile plant. In 2007, the Tatra automobile plant produced and sold 2,431 complete trucks. The basic models of the automobile plant are heavy off-road trucks and trucks for combined highway and off-road use, which are traditionally supplied to the markets of Russia and other CIS countries, India, as well as European countries, primarily Hungary and Slovakia. The company employs more than 1,600 people and about 80% of all products are exported.
Tatra has started producing a new army truck - an SUV for the Czech army. The new car is a joint project of the Czech company with the French company Renault and meets NATO standards. In 2005, the Ministry of Defense of the Chechen Republic signed in 2007. a contract for the purchase of 1000 Tatra trucks from the Tatra company over 10 years for an amount of more than $200 million.
The production of medium-duty trucks (9-12 tons) is carried out by the Avia company, which produced 723 trucks in 2007 (468 in 2006) and sold most of them in the Czech Republic.
In total, in 2007 the Czech Republic produced 3,154 trucks, which is 5.9% more than in 2006.
Production of motorcycles at the Java plant in 2007. reached 2260 units, which is 123% more than last year’s result.
One of the dynamically developing industrial sectors is the “production of agricultural and forestry machinery”, in the development of which the famous Czech manufacturer of wheeled tractors Zetor JSC in Brno played an important role. As a result of the implementation of an investment project worth $12 million related to the reconstruction of production lines and the purchase of new machines and technologies, the production line with a design capacity of 15 thousand tractors per year was updated. In 2007, the company produced more than 7.5 thousand tractors. The main models produced are Major, Proxima and Forterra. The company employs 1,200 people.
Traditional sectors of Czech industry and general engineering include machine tool manufacturing, which is characterized by a wide range of products and a high technical level.
Its share in the volume of sales of products in the general engineering industry is 9.3% and according to this indicator it ranks 4th among its seven sectors.
The most important part of Czech machine tool products are metal-cutting machines and press-forging equipment, which form the basis of Czech mechanical engineering. In 2007, the volume of production in this sector increased by 17% compared to 2006 and amounted to 423 million euros. The production of vertical CNC machining centers, combined CNC boring and milling machines, CNC grinding machines, as well as forging and pressing equipment grew at the fastest pace.
Due to the introduction of new technologies, enterprises in the sector experienced a gradual reduction in the number of employees and an increase in labor productivity. At the same time, there was also an increase in domestic consumption of machine tool products, which is directly related to investment activities.
A characteristic feature of the Czech industry for the production of metalworking and pressing equipment is its established orientation towards foreign markets. The share of exports is about 80-90% of production volumes. Thanks to a consistent innovation policy, Czech manufacturers managed to penetrate and gain a foothold in the markets of industrialized countries in the 90s. The results of recent years indicate that the decline in the machine tool industry has been overcome and the market is gaining strength.
The volume of exports of machine tools in 2007 increased by 12% and reached 370 million euros in value terms. In the group of processing machines and press-forging equipment, there is a stable negative balance of foreign trade, which has been gradually decreasing in recent years. The Czech Republic re-exports part of the imported machine equipment.
The largest manufacturers and exporters of universal lathes include the companies Kovosvit, Sezimovo Usti and Taimak ZPS, Zlin, which produce lathes, automatic machines and machining centers that meet international standards. The specified equipment is equipped with modern control software from well-known companies: Siemens, Fidia, etc. The Taimak ZPS enterprise, through the Czech foreign trade organization Alta, takes an active part in modernizing the technical base of Russian enterprises. A new product in the Kovosvit production program is a five-axis vertical machining center. A special place in this segment is also occupied by the Skoda Machine Tool company, which specializes in the production of heavy horizontal boring machines, rotary tables, and special lathes, intended mainly for metallurgical production. The machines allow processing workpieces weighing up to 250 tons and lengths up to 30 meters. The company is also one of the well-known manufacturers of milling equipment. More than 90% of manufactured products are exported. In December 2005, the Skoda Machine Tul plant of heavy metalworking machines was acquired by the Russian company Stanko Impex, Moscow.
The leaders in the field of production of grinding machines are JSC "Cetos, Gostivarzh" and "Ervin Junker, Melnik" (owned by the transnational company Junker Group). Erwin Juncker supplies a wide range of classic and CNC machines for grinding operations, including high-speed grinding machines. A unique product from Cetos is the world's largest crankshaft grinding machine. The weight of the crankshaft ground per fastening reaches 40 tons.
A significant share in the production and export of forging and pressing equipment belongs to the companies Šmeral, Brno, Ždyas (a controlling stake in the Slovak company Zelezarny Podbrezova) and Dieffenbacher-Zz, Brno. The company "Šmeral, Brno" specializes in the production of vertical stamping presses with high technical pressing characteristics, etc. JSC "Zdyas" is one of the largest enterprises in the Czech Republic. It is a machine-building and metallurgical plant, which, in addition to pressing equipment, produces equipment for rolling shops and metallurgical products.
Given the ongoing recovery in the Czech economy, which requires the expansion, renovation and repair of capital assets, we can expect further dynamic development of the processing machine sector.
Currently, trade and economic relations between the Russian Federation and the Czech Republic in the field of mechanical engineering are characterized by a pronounced imbalance associated with a significant excess of Russian mechanical engineering imports from the Czech Republic over the export of machinery and equipment to the Czech Republic. The growth of Russian mechanical engineering imports, on the one hand, is associated with growing industrial production in Russia, and on the other, indicates an increase in the export potential of the Czech Republic and the effectiveness of government support measures for exports to the Russian Federation, aimed at reducing the overall negative balance in mutual trade.
The Czech Republic is making a significant contribution to the modernization of the production base of Russian industry by supplying modern high-tech equipment. With the participation of Czech companies, large joint projects are being implemented, including the modernization of the Federal State Unitary Enterprise Uralvagonzavod (Nizhny Tagil), the construction of a technological line for the production of biofuel in the Omsk region and glass factories in the Omsk and Sverdlovsk regions, etc.
According to the Czech Association of Manufacturers and Suppliers of Processing Machine Tools, which unites about 40 machine tool enterprises, about 1 million Czech-made machines are in operation in Russia, which creates additional prerequisites for promoting Czech machine tool products on the Russian market.
In 2007 The implementation of the signed agreement between the Czech enterprise TOS Varnsdorf and OJSC Ivanovo Heavy Machine Tool Plant (IZTS) on the creation of a joint machine tool enterprise on the basis of IZTS has begun. Both companies have equal shares in the capital of the new joint venture, 50%.
A large Czech engineering company is Skoda Holding, which unites a number of companies specializing in the production of vehicles (Skoda Transportation, Skoda Electric) and steam turbines (Skoda Power). 100% of the holding's shares belong to the transnational company Appian Group.
In 2007, the most dynamically developing subsidiary of the holding was Skoda Transportation, which is a supplier of low-floor trams for the city of Prague, three-section locomotives for the Ceske Draghi railway company, modernized cars for the Prague metro, as well as an exporter of trams to a number of European countries. The company takes part in the modernization of tram parks in cities of Russia and Ukraine. For all its vehicles, the company uses electric drives from its sister company Skoda Electric. Currently, Skoda Electric, together with the Moscow Trolleybus Plant, continues to work on a project for the production of a new trolleybus. With the participation of Skoda Holding and the Russian company Dedal Group, a joint venture was created for the production of electric drives for rail vehicles (trams and locomotives) and trolleybuses on the basis of the Sibelektroprivod enterprise, Novosibirsk. Both companies have a 50% stake in the capital of the enterprise, and the total investment of Skoda Holding amounted to 6.3 million US dollars. It is invested in developing the technological base of the enterprise and improving product quality.
Another large engineering enterprise of the Skoda holding, specializing in the production of steam turbines, is Skoda Power. The company's production program includes: design, production, installation and reconstruction of power equipment. The company is working on the design of new generation turbines with a capacity of more than 500 MW. Almost 80% of Skoda Power's sales volume comes from the domestic market and the market of European countries. By order of the energy concern ČEZ, the company is participating in the modernization of the Dukovany nuclear power plant, which is very important for Skoda Power, as this will allow it to receive large contracts in the future for the modernization of thermal power plants of the ČEZ concern. The company has also received a number of orders from private Czech power plants. Currently, the Skoda Power company is involved in the implementation of a project for the reconstruction and modernization of the Krasavino power plant with a capacity of 200 MW (previously built by the Czech company Skoda, Pilsen) in the Vologda region.
It should be noted that these enterprises have been actively increasing their production and export activities in recent years. In particular, the Skoda Nuclear Engineering JSC enterprise is today recognized as a Central European leader in the production and supply of equipment for nuclear energy. The strategic trade areas of the enterprise are engineering and supply of equipment for nuclear power plants with VVER-type reactors, equipment for Western types of nuclear power plants, spent nuclear fuel storage, and maintenance of nuclear power plants. Taking into account the development of Russian nuclear energy, a promising direction is cooperation between Russian and Czech machine-building enterprises in the production and supply of power equipment for nuclear power plants.
The Czech aviation industry is represented by the production of jet training and combat aircraft, local transport aircraft, sports aircraft, gliders and the recently rapidly developing production of ultra-light aircraft.
Aero Vodokhody JSC is one of the largest aviation enterprises in the Czech Republic. The company's most significant projects include the production of the L159 combat aircraft, developed jointly with the American airline Boeing, the cost of which amounted to 50 billion crowns. Aero Vodochody JSC managed to supply 72 of these aircraft to the Czech army. Of these, only 24 aircraft are in combat service, and the rest are in storage at the factory. Due to a lack of orders, production of the L159 aircraft has now been discontinued. In 2007, by order of the Ministry of Defense of the Czech Republic, four single-seat L159 fighters were converted into two two-seat aircraft. Throughout the year, negotiations continued with Indonesia, Egypt, Nigeria, Venezuela and Greece on possible supplies of L159 from the country's Ministry of Defense, as well as with Libya and Nigeria on the repair of L39 Albatross aircraft previously supplied by the Czech Republic to these countries.
As a result of a tender held in December 2006, the Czech-Slovak investment company Penta Holding became the new owner of Aero Vodohody, purchasing a 100% stake in the company with debts for CZK 2.91 billion.
The plans of the new management of Aero Vodokhodov provide for the restructuring of the enterprise to overcome the crisis situation. At the same time, its main priorities are:
Maintaining aircraft production and production of components, assemblies and other aircraft components;
Creation of a civil airport enterprise on the basis of the airfield;
Continuing cooperation with the Czech Ministry of Defense on the issue of ensuring the operation of L-159 aircraft, carrying out major repairs, modernization and extension of the service life of L-29 and L-39 aircraft previously delivered to other states, as well as active promotion of L-159 aircraft for export.
As a first step, a complete change in the management of Aero Vodokhodov was carried out. Peter Ondro became the new president of the company and chairman of the board of directors. Also during 2007, an additional issue of shares was carried out and the authorized capital was increased to 8 billion crowns. At the same time, large amounts of money were invested in the technical renovation of the enterprise and the number of personnel was reduced by 450 people.
The production program of Aero Vodokhodov consists of military and civilian components, according to which the enterprise has designated structures responsible for:
Development, production and marketing of L-159 combat and training aircraft, as well as modernization and overhaul of previously produced types of combat and training aircraft;
Production of spare parts, components, assemblies and other components for military and civil aircraft;
Development, production and marketing of the civil light turboprop transport and passenger aircraft Ae 270.
Currently, the basis of the company's production program (more than 80% of total sales) is the complete production of S-76C helicopters (with the exception of the installation of dynamic parts) commissioned by the American company Sikorsky Aircraft Corporation. The Czech company is the only manufacturer of helicopters of this type in the world. Of its 8,500 units and parts, Aero Vodokhody produces about 3,000 at its own facilities, and purchases the rest from more than 200 subsuppliers. In 2008, it is planned to transfer the enterprise to the production of “D” series helicopters.
In September 2006, negotiations were completed and a contract was signed with the Italian company Alenia Aeronautica for the production of 350 central wing sections for the light military transport aircraft C-27J with a total cost of 156.6 million euros. As part of this, at the end of September 2006, Aero Vodochody received the first order for the production of two wing sections from Italian parts with delivery in July-August 2007, at the end of November for six more sections, which will be assembled from parts produced by a Czech company based on materials received from Italy and delivered before the end of March 2008. Subsequent sections are planned to be produced entirely from Czech parts.
The civilian product program includes the development and production, with the assistance of the Taiwanese company IBIS Aerospace Ltd., of a single-engine turboprop cargo-passenger aircraft Ae 270 IBIS with a carrying capacity of 1.2 tons (for 10 passengers). However, at present, the issue of mass production of the car is in question due to the lack of real buyers.
Another large airline company, Letecke Zavody JSC, Kunowice produces L410 and L420 turboprop aircraft for local airlines, as well as single and double L23 and L33 aircraft. In June 2005. JSC Aircraft Industries, a.s., as a result of winning the tender, became the owner of this enterprise. (In 1998, the LET aircraft plant was put up for competition and sold to the American company Ayers Corporation, which did not have sufficient funds and led the enterprise to bankruptcy). To the new owner of the enterprise, JSC Aircraft Industries, a.s. managed to receive a number of export orders and, after a ten-year break, resumed production of L-410 aircraft. In 2006, four aircraft were assembled and 10 aircraft were modernized and overhauled. Two L-410 aircraft were delivered to the Brazilian company NHT Linhas Aereas, and in March 2007 another one. The cost of the aircraft is 63 million Czech crowns (2.5-3 million US dollars). In 2007, the company produced eight aircraft for customers in Brazil, the Caribbean, Algeria and South Korea. In 2008, it is planned to increase L410 exports to Brazil to 8 vehicles. Total aircraft sales by the Czech company, which employs 480 people, are expected to reach $26 million in 2007.
In recent years, the production of ultra-light aircraft has begun to develop rapidly in the Czech Republic, which has allowed Czech companies to take strong positions in this market segment in Europe and the USA (up to 30% of the American market). Every year they produce about 500 of these aircraft of various types. Their leading manufacturers are:
Evektor-Aerotechnik JSC Kunowice is the main manufacturer of two-seat light and ultra-light aircraft of the EV-97 VLA, Cobra, Eurostar and Sportsstar types. The company employs 240 people. It is also engaged in the development and production of light general purpose transport aircraft VUT-100 (being certified), as well as EV-55, the first flight of which was carried out in 2007. The company also specializes in the production of ultra-light aircraft. In 2007, more than 180 units were produced.
“Czech Aircraft Works spol. s.r.o., Stare Mnesto, Zlín region (a controlling stake belongs to the Irish company QucomHaps Holdings) - produces light aircraft developed in the USA, the Floats, Zenair 601, Parrot series, and the Mermaid seaplane. The company employs 200 people, its turnover is about 7 million US dollars. Every year it produces up to 150 aircraft of these models. In December 2005, Czech Aircraft Works became the owner of Morovan Airplanes JSC.
Morovan Airplans JSC (Otrokovice) - specializes in the production of training aircraft “Zlin”, Z-242L (double), Z-143Lsi (four-seater) and sports aircraft Z-50M Z 137T. In May 2006, the company signed contracts to supply four Z-242L and one Z-143Lsi aircraft to customers in Asia.
JSC "Iglavan Aeroplanes", (Iglava) - develops and produces ultra-light aircraft RAPID Master and RAPID Major.
In addition, the Czech aviation industry has a number of enterprises producing aircraft engines, the largest of which is
JSC "Walter Engines, a.s." (former Motorlet company), Prague - the main manufacturer of aircraft engines in the Czech Republic. Developer and manufacturer of the M701 turbojet engine for the L-29 combat trainer aircraft, the M601 series turboprop engine for the L-410, L-420 and other types of aircraft, as well as piston aircraft engines of the M337, M132, M332, M137 series. Currently, the production program includes the production and repair of M601 series engines, gas and oil pumping turbocompressor units, as well as individual engine components and assemblies ordered by Rolls-Royce (Great Britain), SNECMA and Turbomeca (France). The volume of products produced annually is up to 33 million US dollars. The company employs 480 people.
State company "LOM Prague, sp." (owner of MO CR). It was created in 2003 as a result of the merger of three state-owned enterprises: the aircraft repair plant in Maleszyce (“LOM-Malesice”), the aircraft repair plant in Kbely (“LOK-Kbely”) and the branch plant of the Military Technical Institute of Aviation and Air Defense. The enterprise employs 910 workers and employees. Its production facilities are located in Prague (districts of Malesice and Kbely) and in Stara Boleslav (branch plant). The company is a large enterprise for the repair and modernization of aircraft equipment. Its production program includes:
Comprehensive repair and modernization of Russian Mi-17 and Mi-24 helicopters, their engines and transmissions, as well as Polish-made helicopters;
Repair of air-breathing engines of MiG-21, MiG-29, Su-25, L-39 and L-29 aircraft;
Modernization of aviation avionics and communications equipment in accordance with NATO standards;
Development of unmanned aerial vehicles;
Production and repair of piston aircraft engines M337AK, M337V, M132, M332, M137 as well as propellers;
Modernization and repair of An-26 aircraft.
One of the main challenges facing enterprises in the Czech aviation industry is to ensure the competitiveness of their products. The further development of this industry will, first of all, depend on attracting large investments.
The Czech Republic has a fairly powerful petrochemical and oil refining complex, which is united into the holding JSC Unipetrol, the controlling stake of which is owned by the Polish concern PKN Orlen. Currently, Unipetrol is restructuring. First of all, it is planned to increase the share of production of oil refining products (and sales of petroleum products) and sell some chemical enterprises. In this regard, in the period until 2009, it is planned to invest more than 21 billion crowns (880 million US dollars) in oil refining, namely, in JSC Česka Rafinerska, JSC Paramo, JSC Benzina, and increase its shareholding in these companies and, in the event of the privatization of the state companies “CHEPRO” (state reserves of oil and petroleum products) and “MERO” (system of internal oil and product pipelines), take an active part in it. In 2007 JSC "Benzina" invested $20 million in the reconstruction and re-equipment of its network of gas stations. At the same time, the Unipetrol holding decided to sell the chemical enterprise Spolana, Neratovice, which produces PVC and caprolactan. For 10 years the enterprise was unprofitable and only in the last two years has it achieved high production indicators. In 2007 JSC Kauchuk was sold for 150 million euros to the Polish company Dwory, which is the largest manufacturer of rubber for the footwear and rubber industries. The largest Russian oil company Lukoil, which in the Czech Republic already acquired a network of gas stations in the amount of 44 units in 2006, is showing interest in purchasing a stake (16.33%) in the oil refinery JSC Česká rafinerska.
Ø agriculture
The Czech Republic is a country with a fairly developed agriculture. The total agricultural land fund is 7905.6 thousand hectares, including arable area and pastures - 4307 thousand hectares, gardens - 160 thousand hectares, vineyards - 14.2 thousand hectares, hop planting - 5.6 thousand. ha. The area of forest land is 2,638 thousand hectares.
There are 24 thousand active reservoirs and ponds on the territory of the Czech Republic, 107 of which are large valley reservoirs with a water volume of 4159 million m3. Forests in the Czech Republic occupy about 35% of the territory. The main economic species are spruce, beech, oak and larch.
Despite the fact that in 2007 The grain harvest in the Czech Republic was very high, prices for grain crops increased, which is primarily explained by the use of grain for the production of biocomponents in automobile fuel and the associated increase in demand for these crops. For example, the price of food wheat in 2007 was. doubled and amounted to 289 US dollars per ton, and under long-term contracts – 450 US dollars. In addition to wheat, in 2007 There was a significant increase in prices for soybeans and rapeseed, which reached their historical highs by the end of the year. At the same time, there was a decrease in corn prices.
In 2007, the number of “employed” in agriculture decreased compared to the level of 2006 and amounted to 2.9%, which is explained by the low level of wages. So, for example, in 2007. the average for agricultural workers was CZK 15,615 (USD 750), while the average salary was CZK 21,362 (USD 1,027).
According to the Czech Statistical Office, in 2007 the agricultural harvest was, on average, 10.7% higher than in 2006. The grain harvest as a whole amounted to 7560.5 thousand tons with an average yield of 4.55 t/ha.
In 2007 The area under potato was increased by 6.3% (from 30 thousand to 32 thousand hectares), which made it possible to collect 839.0 thousand tons and about 200 thousand tons on private farms with a yield of 26.28 t/ha. Compared to last year (785.0 thousand tons), the harvest increased by 54 thousand tons, and the yield increased by 14.0%. Due to the fact that in the Czech Republic potatoes are not used for the production of biocomponents for addition to automobile fuel, the increase in potato yields and the expansion of agricultural areas for this crop contributed to a decrease in 2007. potato prices compared to 2006 by approximately 42%.
Sugar beet harvest in 2007 decreased and amounted to 2683.0 thousand tons (in 2006 - 3138.3 thousand tons), the yield also fell by 4.0% to 49.44 t/ha. The reduction in beet area is also explained by the fact that in 2007. The European Union has implemented a reform providing for a reduction of sugar production quotas in the Czech Republic by a third. This forced one of the largest Czech sugar producers, the Eastern Schugar company, to close three large sugar processing plants in the Czech Republic.
Long-standing traditions of flax production in the Czech Republic have been preserved, but the area occupied by this crop in 2007, compared to 2006, decreased by 70.5% to 2120 hectares. Taking this trend into account, in 2007 flax production amounted to only 5.6 thousand tons.
For hop production in 2007. in the Czech Republic, 5.4 thousand hectares were allocated. In 2007, the hop harvest amounted to about 5.6 thousand tons, which covered about 40% of its annual needs.
Due to an increase in the area under grass by 43 thousand hectares, the harvest in 2007 increased slightly compared to 2006. (by 0.5%) and reached 2807.0 thousand tons, however, the yield decreased slightly (by 4.1%) to 3.01 t/ha.
Hay production is an indirect indicator of the relative growth of livestock numbers. Below is the dynamics of changes in the number of livestock and poultry in the country over the five-year period 2002-2007.
In 2007 In the Czech Republic, a total of 626.3 thousand tons of meat was produced, including: pork - 340.9 thousand tons (54.4% of the total), beef - 78.9 thousand tons (12.6%) , lamb - 0.2 thousand tons (0.03%), poultry meat - 205.8 thousand tons (32.8%). In 2007 pork production increased by 2.4%, beef - by 0.2%, poultry production decreased by 4.8%. One of the reasons for the decline in poultry meat production in 2007. There was an epidemic of "bird flu" in a number of regions of the country, which led to the forced destruction of the poultry population.
The volume of milk production in 2007, compared to 2006, remained practically unchanged and amounted to 2390 million liters per year, which is only 2.6% more than in 2006. This led to an increase in prices for milk and dairy products in 2007. compared to 2006, on average by 25%.
Volume of beef, pork and poultry production in the Czech Republic in 2007. did not satisfy the population's needs for meat products, and therefore the Czech Republic in 2007 was forced to import meat and meat products from EU member countries. At the same time, the Czech Republic exported meat products and meat. In 2007 the volumes of import and export of pork were equal to the volumes of 2006. and amounted to: exports - 14.5 thousand tons, imports - 5.9 thousand tons. Products were exported mainly to Germany and Slovakia, and imports were carried out from Germany, Austria, Poland, Holland, and Spain.
Import of beef meat to the Czech Republic in 2007. compared to 2006 increased by 75.5% and amounted to 16.8 thousand tons. Exports over the same period decreased by 1.7% and amounted to 3.7 thousand tons. Meat was exported mainly to Austria, Germany, Italy, Slovenia, and Greece.
In 2007 The Czech Republic supplied 21.4 thousand tons of chicken meat to Slovakia, Brazil, Germany, Holland, Hungary, and Austria. At the same time, 50.5 thousand tons of chicken meat were imported into the Czech Republic from Poland, Germany, Slovakia, and Holland. Volumes of import and export of chicken meat in 2007 decreased, respectively, by 16, 6% and 5.4%. According to the Ministry of Agriculture of the Chechen Republic in 2007, compared to 2006, the volume of purchases of milk and dairy products abroad amounted to 27.3% of the total volume of milk production, and supplies - 10.2%. The main suppliers of milk and dairy products to the Czech Republic were Slovakia, Germany and Poland, consumers – Germany and Slovakia.
After joining the European Union, the import of products into the Czech Republic increased significantly, which had an impact on their production by national producers. As a result of the growing volume of imports, prices on the domestic market of the Czech Republic for food products decreased and were lower than the price level for similar goods on the foreign market. It should be noted that the subsidized nature of agriculture in the Czech Republic largely determines the sectoral structure of agricultural production in the Czech Republic.
Export of agricultural food raw materials and products in 2007. exceeded 4% of total exports. Its structure was dominated by dairy products, beer, malt, confectionery, candy, cigarettes, food additives, bakery products, cookies, grains and oilseeds, and hops.
In 2007 In the development of agriculture in the Czech Republic, negative factors were observed related to the continuing reduction in the number of workers employed in agricultural work due to low wages, as well as the presence of significant financial debt of agricultural cooperatives to banks.
According to experts of the Agrarian Chamber, to correct this situation in agriculture, an alternative direction should be developed, namely, ecological agriculture.
The main activities of ecological agricultural farms include: processing of grain, wheat, buckwheat, medicinal herbs, spices, production of beef and milk with a large share of goat milk. The production and processing of biological products opens up great opportunities for investment, given the demand both domestically and abroad for bioraw materials and biofood products.
In 2007 the number of agricultural enterprises engaged in the production of biocultures has increased compared to 2006. by 25% (350 farms) and by the end of the year 1249 of them were registered. In 2007 There were 223 biofood producers in the Czech Republic. The total area occupied by biocultures in 2007 was 28 thousand hectares, which exceeded the same figure in 2006. 5.6 times (in 2006 – 5 thousand hectares).
In 2007 The government of the Chechen Republic approved a program for the development of bioproduct production, designed for the period until 2013. and providing for annual investments in its implementation in the amount of about 10 million US dollars.
Ø construction
The volume of construction production in the Czech Republic in 2007 increased by 6.8% compared to 2006 and amounted to approximately CZK 494.5 billion. CZK ($23.77 billion). In the total GDP of the Czech Republic in 2007, the share of construction production amounted to 14.1% and decreased compared to 2006. by 8.7%. About 75% of construction production volumes were provided by 2,505 construction companies with more than 20 employees. The rest of the construction work was carried out by small teams and firms with 1-19 employees.
The volume of construction work of companies with more than 20 employees in 2007 exceeded CZK 380 billion. CZK At the same time, firms with employees from 20 to 49 people accounted for 13.8% of the total volume of construction work, and firms with 50-99 people. – 10%, for organizations with 100-249 employees. – 11.6%, for companies with 250 – 499 employees. – 7.3%, and for large companies with more than 500 employees. – 26.6% of the total volume of construction work for 2007
More than 75% of the volume of construction work accounted for new construction, including reconstruction and modernization of an investment nature. The structure of new construction production in 2007 was characterized by the following data:
· apartments and residential buildings – 18.7%;
· production premises – 17.4%;
· social and cultural facilities – 21.6%;
· engineering and communication networks – 41.3;
· dams, locks, watercraft – 2.0%.
In general, in 2007, the volume of new construction increased by 6.5%, which was achieved through the implementation of a number of large-scale projects, incl. intensive construction of transport infrastructure facilities (sections of roads, bridges, tunnels); large shopping, entertainment and administrative centers; factory floors; logistics centers; municipal and cooperative housing, as well as the willingness of banks to provide mortgage loans on favorable terms and the possibility of using financial resources from European Union funds.
The highest growth rates in the volume of construction work were observed abroad, which increased by 42.4% compared to 2006 and amounted to approximately CZK 15.2 billion. CZK The volume of work under the item “construction in progress” increased by 27.1%, which totaled about CZK 6.5 billion for the year. CZK
As of January 1, 2008, 2,505 construction enterprises and firms with more than 20 employees were registered in the Czech Republic, with more than 40% of companies employing from 25 to 50 workers. There were 8 registered firms with over 1,000 employees. Overall, the construction industry employed over 163,600 workers, which is 2.3% less than in 2006. Of these, 103,600 people were engaged in manual labor. The average monthly salary of construction company workers in 2007 increased compared to 2006 by 7.3% and amounted to CZK 22,488. CZK (about 1100 USD), the average hourly wage increased by 7.95% and amounted to 151 CZK. crown At the same time, labor productivity last year in the Czech construction industry increased by an average of 7.5%.
In 2007, 118,541 permits for new construction were issued, which is 12.6% less than in 2006. However, in value terms, the volume of new construction remained at the same level and amounted to CZK 358.5 billion. CZK (in 2006 -360.5 billion CZK).
The growth rate of housing construction in value terms increased by 5.4%. Construction of 48,632 apartments began, which is 2.3% less than in 2006 (49,777 apartments), but only 34,221 apartments were put into operation, which is 27.5% more than the volume of housing commissioned in 2006. According to experts, the volume of housing construction in 2008 will remain relatively high (the growth rate is projected from 4.5% to 5.4%), which is directly related to the existing The Czech Republic has conditions for the purchase and construction of housing at affordable prices, which will be facilitated by preferential mortgage lending (in 2007, banks provided 55 thousand mortgage loans worth over $4.2 billion, which is 15% higher than in 2006. ). This was also facilitated by the successful functioning of the program of state support for young families during the acquisition (construction) of their first living space, as well as the law on socio-economic reforms adopted in the Czech Republic on increasing (in accordance with EU requirements) VAT rates on construction work from 5% to 9% (for apartments up to 90 sq. meters, private houses up to 150 sq. meters and so-called “cheap” housing - orphanages and homes for the elderly), and for construction work of luxury housing - up to 19%. In 2008, a significant increase in the volume of construction of cooperative housing is also expected, directly related to the further implementation of the “Program of State Support for Cooperative Construction in the Chechen Republic.” Construction growth rates in the Czech Republic in 2008 are projected at 5% -6%, and the volume of construction work will amount to about 510 billion crowns (25.3 billion US dollars).
Ø retail trade and services
The Czech domestic market is sufficiently saturated with goods and services that meet international standards.
Retail trade turnover in the Czech Republic in 2007 increased by 7.5% compared to 2006, including the turnover of non-food products - by 7.8%, and food products - by 3.5%. The increase in trade turnover was observed mainly among large trading enterprises. The increase in domestic consumption was influenced by such factors as an increase in average wages, a strengthening of the national currency, a decrease in prices for clothing, shoes, household appliances and electronics, an increase in the supply of cheap goods from the European Union and Asian countries such as China, Vietnam, India , Korea and Japan.
In addition, in 2007, the volume of consumer loans to the population in the Chechen Republic increased significantly (by $8.4 billion), most of which was used for the purchase of housing and the purchase of goods.
Durable goods - cars and household appliances, purchased both on credit and by installments, have become a significant share of the retail turnover of the Czech Republic in recent years.
In 2007, a total of about 132.5 thousand new cars and minibuses were sold in the Czech Republic, which is 6.9% more than in the previous year.
The most purchased car models were: Skoda - 51,833 units, Renault - 8,156 units, Volkswagen - 7,116 units; "Ford" - 5414 pcs. New cars were purchased mainly by firms, while individuals more often bought used foreign cars. As a result, their imports increased by 16.2% compared to 2006 and amounted to 212.8 thousand vehicles.
Sales of new generation televisions with plasma and liquid crystal screens have increased significantly, prices for which have decreased by almost 20%.
The increase in the growth rate of domestic trade turnover, in turn, contributed to the growth of the turnover of large foreign trading companies that own an extensive network of supermarkets in the Czech Republic, through which over 70% of the total retail trade volume is currently sold. The total retail space of these companies in the Czech Republic increased by 12% in 2007 and amounted to about 1.5 million square meters. m. This year it is planned to open a number of new hyper- and supermarkets, as well as expand the network of discount shopping centers. However, the prospects for further expansion of multinational companies into the Czech retail market are very limited. Due to the high concentration of large foreign trading companies in the retail market and increased competition in it, some foreign companies have decided to leave the Czech market. For example, the owners of the retail chain of Korefur stores sold part of their retail space to the Tesco supermarket chain, and the Delvita chain of stores was sold to the Bila supermarket chain.
E-commerce turnover is developing rapidly, amounting to more than $700 million and increasing by more than 20% compared to 2006. Currently, there are about 3.5 million Internet users in the Czech Republic and 1/3 of them periodically use e-commerce services. It is expanding the range of goods offered, and now it is possible to purchase not only industrial goods, but also basic food products. Goods sold online are cheaper than in regular trade and the buyer retains the right to return them within the next 2 weeks without justifying reasons.
The development of retail trade turnover and the purchasing power of the population was influenced by the level of prices for consumer goods and services, which in 2007 increased by 2.8%, which is 0.3% more than in the previous year. At the same time, the increase in prices for consumer goods amounted to 2.7%, and for services – 3.1%.
First of all, utilities and services in the restaurant and hotel business have risen noticeably. Price dynamics in this area were due to rising energy prices. At the same time, prices for gas increased by 7.5%, electricity - 9.1%, heating and warm water - 10.2, cold water - 8.0%, sewerage - 5.5%. The restaurant and hotel industry was characterized by an increase in prices in public catering by 3.8% and a significant increase in the cost of hotel accommodation - 7.9%.
Prices grew the fastest in the healthcare sector (primarily drugs - by 9%), as well as for postal and telecommunications services, where prices increased by an average of 8.5%. In the sphere of recreation and culture, there was an increase in prices for recreational and sports services by 6.3%, as well as for periodicals - 3.4%.
The dynamics of prices in the field of transport services was influenced, first of all, by the increase in prices for motor fuel, which increased by 8.1% in 2007. As a result, prices for transport services increased by an average of 12.5%.
Food and non-alcoholic beverage prices rose the fastest, especially in the fourth quarter. This is obviously due to the law adopted in August 2007 by the Government of the Chechen Republic, which provides for significant changes in the tax system, abolishes a number of social and economic benefits, and provides for partial payment for health care services. As a result, prices for baked goods increased by 37%, butter by 24%, milk by 27%, chickens by 36%, apples by 31%, beer by 6%, while at the same time prices for tea, coffee, cocoa, chocolate decreased on average by 3.2%. Prices for beef and granulated sugar remained at the same level.
The rise in prices for food products was restrained by imports of cheaper food products from other EU countries, as well as the strict pricing policy of large chain trading companies dictating prices to suppliers.
For consumer goods in 2007, there was a decrease in prices for clothing and footwear (by 4.2%), household appliances and electronics (by 7.6%), which was the result of increased competition in the markets for these goods, as well as the import of cheap goods from Asian countries. At the same time, prices for new and used cars have dropped.
It should also be emphasized that the purchasing power of the Czech population is still inferior to the average in developed European countries and is about 70% of its value. The increase in retail turnover in the Czech Republic is largely due to the rapidly growing volume of consumer and mortgage loans issued. At the same time, the number of debtors to repay loans increased by 21% to 390.0 thousand people, against 320 thousand people. in 2006. The total amount of debt on consumer loans in 2007 increased by almost 12 billion. US dollars and amounted to more than 38 billion US dollars at the end of the year.
It is predicted that in 2008 retail trade turnover will increase by 4-5%. At the same time, it is expected that food prices will rise, and household appliances and electronics will become cheaper. Interest rates on consumer loans compared to 2007 will increase by 1.5%–2.0%.
Ø transport infrastructure
The Czech Republic is located in an area of concentration of economic activity in Europe and is an important connecting point of the European transport system, where the main routes for the movement of goods from the Baltic Sea ports to the northern Balkan Peninsula and central Europe pass. On a regional scale, the Czech Republic also has an important connecting role for the delivery of goods to the German, Polish, Austrian, Slovak and Hungarian markets.
The Government of the Czech Republic is consistently implementing the program “Development of transport networks of the Czech Republic until 2010”, the main goal of which is the modernization of transport infrastructure in accordance with EU technical standards and its integration into the pan-European transport system within the framework of the European agreements AGC, AGTC, AGR, AGN, TER , TEM, TEN, etc.
In particular, work is underway to connect the Czech Republic to the Eurocorridor North-South project, to modernize the III transit railway corridor Prague-Pilsen-Cheb-German border for the purpose of its integration, and, with the European railway E40 (Le Havre-Paris-Frankfurt -Prague-Lviv), VI trans-European “corridor” to the south of the country to Czech Budejovice and Austria, a multimodal “corridor” of the trans-European network TEN (Katowice-Bohumin-Ostrava-Brno-Vienna), an integral part of which will be the D47 motorway. The construction of the 1st transit corridor (Decin-Prague-Czeska Trebon-Brno-Brzeslav-border with Slovakia-later the border with Austria) and the 2nd transit corridor (border with Austria - Brzeclav-Ostrava - Bohumin - Petrovice- border with Poland).
As part of the development of transport infrastructure, the following work was carried out in 2007:
· reconstruction of the 4th and 3rd “corridors” has begun, the railway tracks between the cities of Prague-Pilsen-Cheb, between the cities of Pilsen-Stribro are almost completed;
· the state organization "Directorate of Highways and Roads" announced 11 tenders for the construction of highways and highways of the 1st category, amounting to about 1.6 billion US dollars;
· construction work continued on the D1 (Moravská), D3 (Českobudějovitská), D11 (Hradecka), D47 (Ostravská) motorways, as well as the R1 (circular highway around Prague), R6 (Karlovy Vary), R35 (Olomouc) highways. 24 km of highways, 50 km of expressways and 1st category highways were put into operation;
· work has been completed to improve navigation conditions on the lower Labe, and work on the construction of the Přelouč dam has also continued.
Currently, road transport plays a dominant role in the transport infrastructure of the Czech Republic. About 87% of Czech exporters use it, 7% use railways, 3% use air transport, and 3% use inland water transport. In December 2007 The European Commission approved the “Operational Program Transport”, which provides for the allocation of European Union financial resources to the Czech Republic for the period 2007-2013, including the reserves of the EU Solidarity Fund, the EU Structural Fund for European Regional Development (ERDF) and the INTERREG Structural Fund ", in the amount of 5.77 billion euros, including: for the construction and repair of TEN-T highways - 1.7 billion euros; for the modernization of first category roads in addition to TEN-T - 1.1 billion euros; for the modernization and development of the TEN-T railway network - 2.2 billion euros, for the modernization and development of the Prague metro - 0.3 billion euros, to support multimodal transport networks and the development of inland water transport - about 0.2 billion euros. In 2007, the European Investment Bank allocated a loan in the amount of USD 1.6 billion to the Czech Republic for the development of transport infrastructure, mainly road and railway networks.At the same time, in 2007 the Government of the Czech Republic allocated for these purposes (taking into account the average the cost of constructing one km of motorway or first category road in the Czech Republic is US$16 million) budgetary allocations in the amount of US$2.4 billion. For 2008 For these purposes, the budget of the Czech Republic has allocated 2.1 billion US dollars, and, in addition, it is planned to allocate financial resources received from the sale in 2007 to this area. a block of shares (about 5%) of the Czech state energy company ČEZ in the amount of about 1.5 billion US dollars.
The overall level of development of transport infrastructure in the Czech Republic in 2007. was characterized by the following main indicators:
Automobile transport:
By the end of 2007, the Czech Republic had roads with a total length of more than 55.6 thousand km, of which:
· 562 km were highways;
· 6.21 thousand km - highways of the first category, including 353 km of express highways;
· 14.7 thousand km - second category highways;
· 34.2 thousand km – highways of the third category;
· 2.63 thousand km - roads and highways corresponding to European category E.
Motorways and expressways play a significant role in the transport system of the Czech Republic, providing connections between the political, economic, tourist and resort centers of the Czech Republic, and are also used as international transit road arteries between Austria, Germany, Poland and Slovakia.
In 2007 In the Czech Republic, 74 km of roads were put into operation.
The transport infrastructure development program for the period 2005-2013, adopted by the Government of the Chechen Republic in 2005, provides for the following main directions:
· connecting all regions of the Czech Republic with a network of motorways and expressways;
· providing more qualified services for transit road traffic;
· ensuring adequate road infrastructure in the border areas of the Czech Republic;
· when designing new highways, maximum reduction of the negative impact on the environment and ensuring adequate protection of the territory adjacent to the highways;
· development and modernization of the railway network.
The program provides for the commissioning in the Czech Republic by 2013 of highways with a total length of 1085 km (currently 562 km) and first category highways, incl. expressways – 1142 km (currently – 353 km).
As part of the implementation of the program, the following activities have been identified as priorities for the coming years:
· construction of the most important sections of motorways D1, D8, D3, D5, D11 (mainly in the Moravian-Silesian Region and in the center of the Czech Republic);
· acceleration of the construction of the planned sections of the ring road around Prague and the expressways R1, R6, R7, R35, R48, R52, R55 (mainly in the Usti, Olomouc and Vysočina regions);
· continued construction of the third and fourth railway corridors heading west;
· carrying out regular work to improve the quality of roads used as international highways and bypass highways of the first category around cities and rural settlements on international traffic routes.
Czech legislation today allows the attraction of private capital for the development of road infrastructure, and therefore, the program for its development provides for partial financing by private construction companies in the amount of up to 4 billion US dollars (as part of a public-private partnership project), which was planned to be used for construction one of the sections of the D47 motorway, as well as the Prague metro. Unfortunately, in 2007 With the participation of private capital, no more than 30 km of the D3 highway was built on the Tabor - Bošilec section, the cost of which was about $0.5 billion. Private capital was not allowed to build metro lines.
On January 1, 2007, a system of electronic collection of tolls for the use of roads by trucks with a carrying capacity of over 12 tons began to function in the Czech Republic, which was installed on highways and, partially, on first-category roads with a total length of 972 km. Profits from using the system in 2007 amounted to approximately $290 million. The Government of the Czech Republic has planned to install this system on roads of all categories in the Czech Republic by 2017 and expects to receive a profit of about $4.5 billion from its use within 10 years.
After the Czech Republic joined the European Union in May 2004, road freight traffic through the territory of the Czech Republic more than doubled, and the Ministry of Transport of the Czech Republic predicts its further growth in the next 7 years by another 30% - 40%. Currently, about 85% of the total transit flow in CEE passes through the Czech Republic, and therefore already 10% of the country’s total number of highways are operated with significant traffic congestion. To resolve this problem in the Czech Republic, it is extremely important to build in the very near future at least 500 km of highways and first category roads, mainly located in multimodal international transport “corridors”.
In 2007, about 340 million tons of goods were transported along the roads of the Czech Republic, incl. Domestic transportation accounted for over 300 million tons, international transportation accounted for about 40 million tons.
Railway transport:
a) The total length of railways was (in km) - 9,612
The density of the railway network in the Czech Republic is 122 km per 1000 sq. km, which is the highest figure in the European Union. About 90% of transportation is carried out along main highways, the length of which is about 3 thousand km. Railways are not yet fully compatible in terms of axle load, ground speed and dimensions of rolling stock, which forces them to be divided into national and regional. The regional railway network makes up about 30% of the total length of railways, and up to 15% of all cargo transportation is carried out along them.
Priorities for the development of the railway network include: modernization of transit corridors included in the international railway program or priority TEN-T projects. These corridors connect Prague via the cities of Dresden and Nuremberg/Munich to the German railway network and via Linz to the Austrian network. Through the cities of Brno and Ostrava - with the Slovak, Polish and Hungarian railway networks. The modernization of these corridors involves increasing train speeds to 160 km/h, increasing specific axle pressure and increasing the dimensions of rolling stock in accordance with the standards of the European agreements AGC and AGTC. Of the total Czech freight traffic in 2007. about 33% came from Slovakia, 25% from Poland, 20% from Austria, and the rest from Germany.
In 2007, Czech railways carried 182.4 million passengers (47 million more than in 2006) and 98.7 million tons of cargo, which is more than double the freight turnover of 2006 (42, 3 million tons).
In order to further reorganize the railway network of the Czech Republic, in 2007. An independent company "ChD Cargo" was created, which will specialize in freight transportation, thus taking over this function from the state company "Railway Administration". The authorized capital of the newly created company exceeds 423 million US dollars, the number of employees is 13 thousand.
Water transport:
(internal water lines regularly used for transport):
In 2007, the Czech Republic transported 2,285 thousand tons of cargo by waterways, of which 630 thousand tons were transported under contracts with domestic customers and more than 1,654 thousand tons in accordance with foreign trade contracts, incl. 338.3 thousand tons of cargo were exported, imports amounted to 236.5 thousand tons, the total volume of transportation by ships flying the Czech flag and coastal shipping in the territorial waters of foreign countries amounted to about 890 thousand tons.
Compared to 2006, the volume of transportation in 2007 increased by 60% to 1,622 thousand tons (in 2006 it was 1,014 thousand tons).
Air Transport:
Total number of airports - 87
including:
· state airports of international airlines - 9
· state airports with local airlines - 58
· private international airports - 9
· private airports with local airlines - 11
In 2007, the total number of air passengers served at Czech airports amounted to 13.6 million people, incl. on international routes – 13.2 million people. During the same time, over 57.2 thousand tons of various cargo were transported through Czech airports, with international cargo transportation accounting for about 54.3 thousand tons. During 2007 Czech airports served more than 630 thousand transit flights. Currently, airports in the Czech Republic have air connections with 118 cities around the world and serve 54 airlines.
In 2007, the bulk of passengers and cargo in the Czech Republic passed through the following main airports:
· Ruzyne Airport, Prague, was the largest international airport in the Czech Republic. Every day it received and departed 563 flights; over 33,000 people passed through the airport terminals every day. In 2007 passenger traffic is about 12.2 million people. Ruzyne Airport is considered one of the most important logistics centers in CEE.
· Ostrava-Mosnov Airport is the second largest international airport in the Czech Republic. Its runway, 3500 m long and 63 meters wide, is capable of accommodating any type of modern aircraft. The airport belongs to the company Letishte Ostrava JSC.
· The airport in Pardubice is a modernized airport, the runways of which are capable of accommodating almost all passenger and cargo aircraft in the world, including the Russian An-124 Ruslan. Since 2007, the airport has been serving regular flights. In the reporting year, the airport served about 93 thousand passengers. Currently, the management company Bohemian Airport JSC is looking for an investor to reconstruct the airport terminal and increase its capacity to 600 thousand passengers. The cost of the project is estimated at 43 million US dollars.
· In 2007, the reconstruction of the international airport in Karlovy Vary was completed, which made it possible to redistribute parts of the passenger and cargo flow and provide a modern level of service.
· Turany Airport, Brno, receives the largest number of charter flights in the Czech Republic. The length of the airport's runway is 2,650 meters. Financing for the construction of a modern airport terminal was provided from European Union funds.
Pipeline transport:
· total length of oil pipelines (“Ingolstadt” and “Druzhba-South”) passing through the territory of the Czech Republic (in km) - 674
· oil pipeline throughput (thousand tons/day) - 55
· total length of transit gas pipelines (in km) - 2,455
· total length of internal gas pipelines (in km) - 1,182
In 2007, the above oil pipelines supplied the Czech Republic with 7.85 million tons of oil, which is 1.9% lower than the volumes of 2006, and about 7.2 billion cubic meters. meters of Russian natural gas. About 22.75 billion cubic meters were supplied in transit through the territory of the Czech Republic to the countries of Western Europe via the gas pipeline. meters of gas.
Combined transport infrastructure:
The total number of transport transfer stations is 14
including:
a) in accordance with the combination of modes of transport:
· railway-road - 10
· railway - road - waterway - 4
b) in accordance with the capabilities of the reloading equipment:
· in the presence of large-tonnage containers - 14
· in the presence of replaceable superstructures - 6
c) in accordance with the maximum load capacity of the reloading equipment:
· up to 34 tons - 4
· more than 34 tons - 8
Ø level of development of the scientific and technical sphere, participation in international scientific and technical cooperation
For 2007 total budget expenditures on R&D amounted to 21.34 billion kroons. In addition, private business took part in financing industrial developments, whose expenses in this area amounted to 12 billion Czech crowns.
Fundamental research is mostly carried out at higher educational institutions and the Czech Academy of Sciences. A number of universities have created specialized technology centers designed to provide services to entrepreneurs in the field of technology transfer. These centers and other specialized research organizations often interact with industry to form consortia to work on specific projects. Industrial developments in the Czech Republic are the main factor in the innovation process in the country. At the same time, priority is given to R&D in high-tech areas, such as the automotive and aviation industries, information, telecommunications, nano and biotechnologies. The Center for Aviation and Space Research is successfully operating in the Czech Republic.
The Government of the Czech Republic pays great attention to the development of the scientific and technical sphere as one of the main prerequisites for the creation of export-oriented and competitive high-tech products in the European and world markets. In this case, the main goal is to ensure the rapid and effective implementation of scientific research results in accordance with the “National Development Plan in the field of scientific research and development for 2007-2013”.
The scientific and technological policy of the Czech Republic is aimed at joining the Czech Republic to the European research space and processes in the field of research and development of the EU. The government of the country has developed a target concept for supporting research and development, which provides for an increase in funds from the state budget for research by 2010. in the amount of 1% of the country's GDP. Through tax policy instruments, conditions have been created that motivate the private sector, including foreign investors, to significantly increase participation in the financing of science in the country.
Issues of state regulation, financing and support of the scientific and technical sphere of the Czech economy are supervised by the Council of the Government of the Czech Republic for Research and Development and the Ministry of Education, Youth and Sports of the Czech Republic.
Much attention within the framework of the innovation strategy in the Czech Republic is paid to supporting small and medium-sized enterprises (SMEs). As part of supporting SMEs, the Institute of Science and Technology Parks and Business Incubators (STP and BI) has proven itself well. The main goals and objectives of these organizations are: development of entrepreneurial activity, creation of private enterprises, transfer of technology to production, commercialization of the results of scientific research and development, regional development, solving employment problems.
Targeted research programs are carried out by 22 government organizations and departments. The main organizations independently conducting or supervising scientific research include:
1. Academy of Sciences of the Czech Republic (Main programs: development of research in key areas of science (grants), support for progressive scientific disciplines, support for targeted research, grant projects).
2. Grant agency of the Academy of Sciences of the Chechen Republic.
3. Ministry of Industry and Trade of the Czech Republic - is responsible for the preparation and implementation of programs in the field of industrial research. Main programs:
· "Pokrok" - support for industrial research and development aimed at increasing the competitiveness of Czech industry;
· “Tandem” - increasing the efficiency of implementing R&D results into industrial production;
· “Impuls” - support for the development of new technologies, materials and products; "Stratech" - strategic industrial technologies;
· "Technos" - development of small businesses.
MPT programs are open to the participation of all entities registered on the territory of the Czech Republic, regardless of their form of ownership, including those with 100% participation of foreign capital. Also new is the introduction of indirect support for research and development in the form of preferential taxation.
Support for industrial research and development infrastructure is provided through the Industry and Enterprise operational programme, partly financed by EU Structural Funds. The program provides support for the creation and development of science and technology parks and technology transfer centers. To support the implementation of new developments, the IPT announced the Inovace program (Innovation), implemented through EU structural funds. It aims to promote greater use of R&D results in the manufacturing industry.
4. Ministry of Education, Youth and Sports (Main programs: “Information sources for research”, “Support for young scientific personnel”, “Research centers”).
The Ministries of Health, Defense, Agriculture, Environment, Transport, Computer Science, Culture, Internal Affairs, Labor and Social Security, the Ministry of Foreign Affairs of the Czech Republic, the State Office for Nuclear Safety and other organizations of the Czech Republic also carry out their own R&D support programs.
International cooperation in the field of research and development in the Czech Republic is regulated by Law No. 21/1993, according to which the main organization responsible for this issue is the Ministry of Education, Youth and Sports (MoES).
Due to the fact that currently the basis and main component of the development of the scientific and technical sphere remains the conduct of joint R&D, for the Czech Republic the main priority of international cooperation in the field of research and development is participation in EU framework programs. At the same time, independent projects, bilateral cooperation, as well as participation in the programs of international governmental and non-governmental organizations remain its important areas.
Intergovernmental cooperation of the Czech Republic with other countries is carried out within the framework of the COST (European Cooperation in the Field of Scientific and Technical Research) program - European multilateral cooperation in the field of research and development, aimed mainly at carrying out applied work. The Czech Republic has been a member of this organization since 1993. COST coordinates R&D through the so-called Action, which can be joined by scientists with their own projects from member states. The activities of the Promotion are managed by the Management Committee. Its members are representatives of countries that have joined the Action by signing a Memorandum of Understanding (a document in the nature of an international treaty). The organization and operation of the program is based on the “bottom-up” principle, i.e. R&D topics are suggested by research staff. The highest body of the program is the Committee of High Representatives of COST, in which all member countries, the European Commission and the Council of the EU are represented. The main event of the program is the conference of ministers of COST member states responsible for research, held every five years.
The COST program conducts applied research in the following areas: computer science, telecommunications, transportation, oceanography, materials, environment, meteorology, agriculture and biotechnology, food research, information technology, social sciences, medical research, civil engineering, chemistry, forestry, physics, flow dynamics.
R&D funding is carried out at the national level. COST does not have any funds to fund research. In the Czech Republic, since 1993, projects have been partially financed from the state budget. Funds are allocated by MOMS based on the recommendations of the COST Program Council.
EUREKA Program – European Cooperation in Applied and Industrial Research and Development. The goal of the program is to ensure the commercial implementation of R&D results. The topics of the program projects have no restrictions and go beyond the priority areas of development of industrial sectors. However, the main projects are aimed at conducting research in the following areas: information technology, the environment, biotechnology and healthcare technologies, new materials, robotics and industrial automation, communication technologies, transport.
The Czech Republic has become a full member of the program since 1995. Due to the fact that EUREKA does not have a joint fund to finance R&D, the Czech Government allocates funds from the state budget. Funding can reach 50% of the funds allocated for the research part of the project.
The Council of the EUREKA program of the Czech Republic is the advisory body of the MoI and consists of independent experts from industrial and scientific research organizations. The duties of the council include discussing the participation of new projects of Czech organizations in the program and the conditions for their joint financing from the state budget.
The main criteria for selecting projects to participate in EUREKA include:
Cooperation of enterprises and research organizations with at least two countries participating in the program;
This work will be innovative in nature and contribute to scientific and technological progress;
The prospect of making a profit after the implementation of the project;
The result of the work and its commercial use is intended for the civilian sector;
Project participants must have technical and financial capabilities, have leadership abilities and be competent in solving it.
From June 2005 to July 2006 she was chairperson of the EUREKA program. The projects submitted for consideration by the Czech side during this period concerned the areas of innovation in the field of new materials, biotechnology and the environment.
Czech cooperation in joint NATO scientific projects (civilian research) is carried out mainly within the framework of the Partnership for Peace program.
The body that annually calls for tenders for research projects and approves them is the NATO Science Committee. The main tasks of the committee include supporting joint research projects in the following areas: new materials, environment, clean technologies, agriculture, information technology, etc.
The scientific program is divided into four subprograms:
1) Collaboration in science through Science Fellowships. Its purpose is to support the training and research activities of young scientists from various NATO and partner countries;
2) Cooperation in science and technology (Cooperative Science and Technology). The goal is to establish stable personal contacts between scientists from NATO countries and partner countries in such fields as: physical and engineering science and technology (PST), wildlife science (LST), environmental and earth sciences including technology (EST), civil Security Science and Technology (SST);
3) Research Infrastructure Support. The goal is to support national research programs;
4) Science for Peace. The goal is to support applied research in industry or environmental research.
An agreement between the Czech Republic and the European Space Agency (ESA) on cooperation in the field of space research and space technology was concluded in 1996. Since 1997, this work has been coordinated by the ESA Cooperation Council, which includes experts in the following fields of science: space astronomy, space physics, land exploration, telecommunications and navigation, space biology and medicine, materials creation, engineering and space law. The Council proposes forms of joint work, discusses proposed projects, monitors their implementation and promotes the dissemination of information about cooperation opportunities.
Participation of the Czech Republic in ESA programs requires a monetary contribution of 1 - 2 million euros.
Within the framework of multilateral cooperation, the Czech Republic is:
Since 2001, member of INTAS - International Association for the Support of Cooperation in the Field of Science and Research with the Former Countries of the USSR. The coordinator of this cooperation is the Technology Center of the Academy of Sciences of the Czech Republic;
Since 1995, member of EMBC - European Conference on Molecular Biology - an intergovernmental organization providing cooperation between European states in the field of research in molecular biology and related sciences;
Member of the OECD - Organization for Economic Co-operation and Development. MoI's collaboration with the OECD in the field of research and development is focused on participation in working groups of the Committee on Science and Technology Policy (CSTP);
Member of CERN and SÚJV Dubna - international organizations for research in the field of nuclear physics, particle physics and high energy. Operational and financial support for this cooperation from the Czech side is provided by the Ministry of Industry and Trade and the Ministry of Foreign Affairs of the Czech Republic;
Member of the CEI - Central European Initiative. Within the framework of the working group on science and technology, support is provided for scientific and technical projects (in a limited number) that are aimed at conducting research on topics typical for Central Europe;
Member of the Visegrad Group. The Science and Technology Working Group meets annually to discuss current issues in one of the group's member countries.
Currently, the Czech Republic, in accordance with signed agreements on bilateral scientific and technical cooperation, as well as on the basis of obligations stipulated by intergovernmental agreements on trade, industrial and scientific and technical cooperation, is conducting joint research with the following countries: USA, France, Germany, Austria, Italy, Japan, Mexico, Greece, Slovenia, Spain, Republic of Korea, Slovakia, China, Hungary, Poland, Romania, Belgium, Bulgaria, Finland, France, England, Russia, Kazakhstan, Tajikistan, Uzbekistan, Lithuania, Latvia and Estonia .
The main programs aimed at solving international cooperation projects in the field of research and development, in addition to the above-mentioned COST and EUREKA, are included by the Ministry of Education of Youth and Sports of the Czech Republic:
EUPRO – The goal of the program is the integration of Czech research and development into scientific and technical working groups of the European Union and, as a consequence, participation in EU framework programs;
KONTAKT – This program supports the participation of Czech researchers in multilateral research programs of ESA, the Central European Initiative and NATO, as well as in other well-known bilateral cooperation programs with states with which the Czech Republic has an agreement on joint research and development work;
INGO – The goal of the program is to organize the possibility of participation of research institutes in international non-governmental organizations that are engaged in research and its support.
Ø the role of the state in economic development
The economy of the Czech Republic is developing according to a pan-European model, the basic principles of which are set out in the Strategy for Promoting Trade and Economic Interests of the Czech Republic in the EU, developed by the Ministry of Industry and Trade of the Czech Republic. The strategy is focused primarily on stimulating Czech enterprises in the direction of diversifying exports and introducing joint trade mechanisms that create preferential conditions for Czech entrepreneurs to enter rapidly developing non-European markets and increase the competitiveness of their goods and services.
The state is actively involved in the development of all spheres of the Czech economy and, above all, in such areas of industry as electricity, metallurgy, telecommunications, agriculture, transport and the financial sector. It retains controlling stakes in such strategically important companies as Czech Energy Plants (analogous to RAO UES of Russia), Czech Railways, Czech Airlines, Czech Airports and Czech Post.
At the same time, the share of the public sector of the economy is decreasing every year. The state, through the state National Property Fund, is actively selling state blocks of shares in various enterprises. In 2007, a block of shares (about 5%) of the state energy concern “ChEZ” was sold for 1.5 billion US dollars.
Government bodies perform control and regulatory functions in relation to the market. By analogy with the EU countries, the Czech Republic has created and effectively operates such independent regulatory bodies as the “Energy Authority”, “Telecommunications Authority”, “Office for the Protection of Economic Competition” (antimonopoly authority), “Supreme Audit Office” (audit of state sector and use of EU funds). The main task of these structures is to monitor the market, control over compliance by economic entities with the current rules of the market and relevant laws, regulate relations between market entities in order to ensure its normal functioning.
The entry of the Czech Republic into the EU trading space has led to significant changes in anti-dumping legislation, control over compliance with which is entrusted to the European Commission. The Commission considers the justification for introducing anti-dumping and anti-subsidy measures in relation to imports from third countries, including measures to protect against inflated imports that threaten damage to the domestic manufacturing industry, as well as protection against unauthorized restrictions in trade operations.
To regulate economic development, the state actively uses economic measures of influence, primarily instruments such as financial (budgetary, fiscal) policy and monetary policy. The main subject of financial policy is the Ministry of Finance, which, in addition to forming the budget and tax system, regulates prices for a number of goods and services: electricity, gas, utilities, some food products, railway tariffs, rental housing. Credit and financial policy is implemented by the Czech National Bank, which has relative autonomy and independence from the legislative and executive authorities.
The state plays an important role in the social sphere, to which significant budget funds are allocated. In the social sphere, fundamental reforms are currently being implemented to significantly reduce social payments that are burdensome to the budget, in particular, through the development and improvement of the social and health insurance system.
In 2007, the Ministry of Industry and Trade of the Chechen Republic continued to implement programs to support small and medium-sized businesses through the programs “Guarantee”, “Market”, “Progress”, “Consulting”, “Design”, “Alliance”, created for differentiated provision of loans and financial benefits for small businesses of various types.
The state is pursuing an active policy to support national producers, exports, and attract investment. In order to increase the competitiveness of Czech industry, the Czech government has introduced a system of investment incentives for foreign and domestic investors:
· income tax discount,
· transfer of technically equipped land plots at a reduced price,
· financial assistance to create new jobs,
· financial assistance for retraining and training of employees,
· transfer of land plots registered in the real estate cadastre as agricultural plots, and transfer of other types of land plots.
3. Monetary and financial situation of the Czech Republic
Ø State budget, balance of payments
State budget of the Chechen Republic in 2007 was executed with a deficit of 66.4 billion crowns (3.2 billion US dollars). At the same time, the revenue side of the budget amounted to 892.4 billion crowns (42.9 billion dollars), and the expenditure side - 958.8 billion crowns (46.1 billion US dollars).
In accordance with the Law “On the State Budget for 2008”, the revenue side of the State Budget in 2008 will amount to 1036.5 billion crowns (49.8 billion dollars), expenditure – 1107.3 billion crowns (53.2 billion dollars) with a deficit of 70.8 billion crowns (3.4 billion dollars).
Compared to 2007, in 2008 the volume of budget funds allocated to the Ministry of Transport and the Ministry of Regional Development was significantly increased, mainly for the implementation of programs partially subsidized by the European Union for the development of transport infrastructure. Financing of other ministries and departments of the Czech Republic is carried out at the level of the previous year. Since 2003, the state budget item for servicing public debt has been steadily growing.
State debt
The total public debt of the Czech Republic by the end of 2007 increased to 892.3 billion Czech crowns (42.9 billion US dollars) or 4.2 thousand US dollars per capita. Internal debt amounted to 36.9 billion US dollars, external - 5.9 billion US dollars. The majority of the public debt was accounted for by long-term government obligations - $33.1 billion, while the amount of short-term liabilities amounted to $3.9 billion.
To cover the state budget deficit in 2007, the Ministry of Finance of the Czech Republic issued additional internal debt obligations in the amount of 60.5 billion Czech crowns (2.9 billion US dollars).
According to the Czech National Bank (CNB), its losses in 2007 amounted to 47.9 billion Czech crowns ($2.1 billion), which is primarily due to the growing state budget deficit, a significant increase in the amount of payments for servicing external debt.
The volume of gold and foreign exchange reserves of the Czech Republic in 2007 increased slightly compared to the previous period, amounting to 34.4 billion US dollars (2006 - 31.4 billion US dollars).
Crown rate
During 2007, the trend towards a steady strengthening of the Czech crown against both the euro and the US dollar continued. Czech experts explain the continued strengthening of the national currency by the positive development of the economy at both the micro and macro levels, as well as the efforts of the Government of the Czech Republic and the Czech National Bank of the Czech Republic aimed at reducing inflation (in accordance with the requirements of the European Union for states included in the European Monetary System).
Interest rates of the Czech National Bank
In order to avoid overheating of the national economy due to the rapid strengthening of the Czech crown compared to the US dollar and the euro, the Czech National Bank raised its base interest rates three times during 2007, ultimately increasing each by one percent.
In particular, interest rates on loans in the Czech Republic were:
12/31/2006 12/31/2007
· discount rate – 1.5%, 2.5%
· pawnshop rate – 3.5% 4.5%
· “Repo – 2 weeks” rate – 2.5% 3.5%
The established volume of mandatory minimum reserves for banks in the Czech Republic has remained unchanged since 1999. at the level of 2%.
Inflation
According to the Czech National Bank (CNB), the inflation rate in the Czech Republic in 2007 was maintained at 2.8%. The main influence on it was the positive development of the national economy, the growth of exports of high-tech products, the reduction of state budget expenditures, and the reduction in the cost of imports due to the strengthening of the Czech crown.
Financial system and credit policy
In order to expand the control functions of the Czech National Bank of the Czech Republic in the first half of 2007. A number of changes to the current legislation in the country to regulate the financial market have come into force:
- amendment to the law on the Czech National Bank (No. 6 of 1993), which directly defines the status of the CNB as a single government body exercising control over the country’s financial system;
Amendment to the Law on Banks (No. 21 of 1992), according to which commercial banks in the Czech Republic are obliged to monitor the financial transactions of their clients, to prevent the implementation of financial schemes for “dirty money laundering”, to analyze and provide relevant information to the competent authorities of the Czech Republic;
Amendment to the Law on Payment Transactions (No. 124 of 2002), regulating the procedure for providing and receiving electronic banking services in the Czech Republic;
The new law of the Czech Republic on bankruptcy (No. 182 of 2006), which determines the procedure for declaring the insolvency of a company, the institution of compulsory management, the conditions for holding competitions for the sale of bankrupt property;
A package of amendments to the law on business activities in the financial market (No. 256 of 2004), which determined the status of the central securities depository, clarified the requirements and procedure for conducting transactions for the purchase and sale of securities without the direct presence of the seller or buyer;
Amendments to the law on collective investment (No. 189 of 2004) and the law on specialized funds (No. 224 of 2006), which determined the requirements and procedure for the functioning of open investment funds and closed specialized associations of investors;
The new Czech law on the application of international sanctions (No. 69 of 2006), which was adopted by the Czech Republic in accordance with EU requirements. According to the law, the regulations of the central bodies of the European Union (European Union, European Parliament, Council of Ministers) in the financial sector take precedence over internal legislation. Moreover, the Central Bank of the Czech Republic controls the implementation of this law by subjects of the country’s financial market.
Foreign financial assistance
The Czech Republic has paid off the bulk of its loans from the International Monetary Fund and currently receives only technical assistance in the form of recommendations for the Ministry of Finance of the Czech Republic and the CNB in the field of monetary and financial policy. The Czech Republic is a participant in the IMF's international program for comprehensive analysis of the financial sector. Currently, cooperation with the World Bank (WB) comes down mainly to the Bank's experts conducting research on the Czech economy, primarily the financial market, and issuing appropriate recommendations.
Having completed the repayment of the World Bank loan in the amount of $300 million in 2006, the Czech Republic refrains from government borrowing on the international financial market and is more focused on obtaining additional financial resources through the effective use of monetary policy instruments within the European Union. During the process of integration of the Czech Republic into the EU, the volume of EU assistance for the implementation of projects in the Czech Republic has increased significantly. In 2007 The Czech Republic received 49.1 billion crowns (2.3 billion US dollars) from EU structural funds. The Czech Republic's contributions to the EU budget amounted to 32.1 million crowns (1.5 billion US dollars). Thus, the net influx of financial resources into the country from EU funds reached 17 billion crowns (817 million US dollars), which is almost three times higher than the figure for 2006 (303.9 million dollars).
Financial and credit relations with Russia
Despite repeated high-level statements about the need to develop bilateral cooperation in the banking sector, Czech government agencies, primarily the CNB, have a very negative attitude towards providing Russian financial entities with the opportunity to enter the Czech financial market. In particular, to date, not a single Russian bank has managed to open a subsidiary or branch in the Czech Republic. All efforts of financial structures from Russia are strictly blocked by the CNB, which, citing various reasons (for example, non-transparency of the shareholders, insufficient financial stability of the bank, etc.), refuses to issue a banking license. Thus, despite repeated recommendations of the Russian-Czech Intergovernmental Commission on Economic Cooperation, in 2007 the CNB again refused to issue a license to operate in the Czech Republic to a branch of the First Czech-Russian Bank, which in terms of its own funds is among the 50 largest banks in Russia.
During 2007, active consultations took place between experts from the Russian Ministry of Economic Development and the Czech Ministry of Finance on the issue of introducing amendments and additions to the intergovernmental Agreement “On the promotion and mutual protection of investments between the Russian Federation and the Czech Republic” dated April 5, 1994. The negotiations showed significant differences in positions of the parties on this issue. In particular, the Czech side persistently insists on introducing into the agreement a number of provisions to adapt the Agreement to the requirements of the European Union, which call into question the possibility of applying a national regime in relation to investors from Russia, since any order or instruction of the European Union can be used to apply restrictions on the investment activities of Russian companies in the Czech Republic. The option proposed by the Czechs turned out to be essentially unacceptable for the Russian side. In this regard, further consultations on this issue are postponed.
During the third meeting of the Intergovernmental Commission on Economic, Scientific and Technical Cooperation (October 2007), it was noted that the issues of reducing the state debt of the Russian Federation to the Czech Republic in connection with the supply of Yak-42D aircraft and financing the reconstruction of the Czech House in Moscow. The Commission considers it necessary that both of these issues be successfully resolved as soon as possible.
4. Banking system
At the end of 2007, there were 38 commercial banks operating in the Czech Republic, including 30 with predominant participation of foreign capital (including 14 branches of foreign banks), 8 with full or predominant share participation of Czech capital.
The state, as a co-owner, controls 2 banks for a specific purpose (Czech Export Bank and Czech-Moravian Bank for Guarantees and Development).
The category of large banks, each of which had a balance sheet amount exceeding CZK 100 billion (USD 4.5 billion), included four banks: Czech Savings Bank JSC, Czechoslovak Commercial Bank JSC, HVB Bank JSC and JSC "Commercial Bank"
The category of medium-sized banks, the balance sheet amount of each of which ranged from 15 to 100 billion Czech crowns (about 0.6 - 4.5 billion US dollars), included ten banks, among them: Raifeisenbank CR (Austrian Raifeisen International Holding A.G."), "Zivnostenska Bank" (Italian "JuniCredito Italiano"), "Volksbank CR" (Austrian "Osterreichische Volksbanken A.G."), "GE Capital Bank" (American "General Electric"), etc.
Along with them, another 25 representative offices of foreign banks operated in the Czech Republic, which provided intermediary services and participated in the preparation of a number of agreements and contracts.
In addition, in the list of foreign banks providing their services in the Czech Republic as part of the free movement of services (without opening a branch) in accordance with Art. 21 of Directive 2001/12/EC of the European Parliament and the Council of Europe on the free movement of services, another 108 banking entities appear.
The most dynamically growing banking products were, as in 2007, consumer and mortgage loans. Total net profit of the banking sector for 2007 significantly exceeded the level of 2006 and, according to preliminary data, will amount to more than CZK 44 billion. CZK ($2.11 billion) vs. approx. 1.71 billion US dollars in 2006. The relative profitability indicators of banks are quite favorable. The ratio of profit to average assets exceeded 3.7%, and net profit to capital remained at last year's level of 1.3%. Due to the increase in the CNB discount rates, interest rates of commercial banks gradually increased throughout the year from 2.5% at the end of 2006 to 3.5-3.7% at the end of 2007. The balance sheet amount per employee of the banking sector amounted to about US$4 million, compared to US$3.5 million in 2006. The number of bank branches (i.e. bank trading branches) is 1,850.
III. Foreign economic relations of the Czech Republic
1. Geography of foreign trade, main items of export and import, volume and dynamics of trade turnover over a number of years, its commodity structure
Foreign trade turnover of the Czech Republic in 2007 amounted to 234.1 billion US dollars (an increase of 24.4%), including Czech exports – 119.2 billion US dollars (an increase of 25.3%) and imports – 114.9 billion US dollars. USA (22.5% increase). The positive balance of foreign trade amounted to about 4.4 billion US dollars.
The Czech Republic's share in world foreign trade is 0.5% in exports and 0.6% in imports. The main trading partners of the Czech Republic, EU countries, account for 71.0% of Czech imports and 84.6% of exports
The share of CIS countries in the foreign trade turnover of the Czech Republic is 5.1%, in Czech exports - 3.7% (in 2006 - 3.5%), and in imports - 6.7% (in 2006 - 8.8 %). Russia ranks 9th in the foreign trade turnover of the Czech Republic (3.5%), in Czech exports - 12th place (2.3%), in Czech imports - 5th - 6th place (4.75%).
In 2007, the structure of trade between the Czech Republic and its main trading partners was generally preserved. Compared to 2006, it is characterized by an increase in export and import volumes for almost all product groups.
Foreign trade of the Czech Republic in 2007 was influenced by both positive and negative factors. Positive factors include the growth of industrial production, as a result of which the export of products from manufacturing industries increased by more than 11.2%, mainly due to the export of electrical and optical equipment, machinery and general-purpose equipment. The maximum contribution to the export of mechanical and technical products with high added value comes from vehicles, machine tools, road construction equipment (17.1%) and car engines (8%).
Czech exports are dominated by group 6 SMTK “processed products classified by materials” (20.7%), group 7 SMTK “machinery, equipment and vehicles” (53.8% of total Czech exports) and group 8 SMTK “miscellaneous” finished products" (10.6%).
Czech goods are exported mainly to Germany, Slovakia and Poland. Compared to the previous period in 2007, supplies of mechanical and technical products of groups 6, 7 and 8 to these countries increased by an average of 3-7%.
Negative factors - a decrease in export prices by an average of 2.5% and an increase in energy prices by an average of 20.6% - led to a significant negative balance in the mineral fuel group. For this group of goods, despite a significant reduction in volumes in physical terms (about 28%), cost indicators decreased by only 3.6%.
In the imports of the Czech Republic, highly processed goods still occupied a significant place: group 6 - 21.2%; group 7 – 42.9%; Group 8 – 10.1%. Traditionally, the leading position was retained by Germany, whose share in Czech imports exceeds 28%; China moved into second place, its share in Czech imports increased to 7.6%; Poland (5.8%) and Slovakia (5.4%) took third and fourth place. %). The 5th-6th place of the Russian Federation in terms of import volumes to the Czech Republic is mainly associated with the supply of goods of group 3 of the SMTK “mineral fuel”. Energy exports from Russia to the Czech Republic account for 3.6% of total Czech imports.
2. The degree of liberalization of the foreign trade regime, export-import regulation, features of legislation, trade barriers, tariffs in foreign trade
In 2007, the volume of Czech exports to the EU countries increased to 84.6%, and imports from EU countries amounted to 71.0%, mainly due to the absence of customs barriers.
Within the EU, the Czech Republic trades under preferential treatment with countries such as Macedonia, Faroe Islands, Morocco, Tunisia, Algeria, Egypt. Jordan, Syria, Lebanon, Mexico, Chile, South Africa, Albania, Bosnia and Herzegovina, Serbia, Montenegro, as well as Andorra and San Marino.
Trade of the Czech Republic with third countries is carried out within the framework of the single EU customs system, which is regulated and controlled by the European Commission.
Foreign trade activities in the Czech Republic are regulated by the following legislative acts, which were brought into conformity with the current legislation of the European Union countries before the Czech Republic joined the EU:
· Commercial Code (Law No. 513/1991);
· Civil Code (Law No. 40/1964);
· Law “On Entrepreneurship” No. 455/1991;
· Law “On Protection of Consumer Rights” No. 634/1992;
· Law “On Bankruptcy” No. 328/1991;
· Law “On the Protection of Economic Trades” No. 143/2001;
· Law “On Support of Small and Medium Enterprises” No. 47/2002;
· Law “On Income Tax” No. 586/2004;
· Law “On Value Added Tax” No. 235/2004;
· Law “On Transport Tax” No. 16/1993;
· Law “On Excise Taxes” No. 353/2003;
· Law “On Real Estate Tax” No. 338/1992, etc.
The Czech Republic has an export and import licensing system, which is regulated by Law No. 62/2000 On Certain Measures to Regulate the Export and Import of Goods and Licensing Regulation. Importers are issued the following licenses:
· automatic license – issued for the import of a wide range of goods, without quantitative restrictions;
· non-automatic license – issued for the import of goods in limited quantities;
· safe license – issued for the import of explosives, firearms and other weapons and their components.
The type of import license for a particular product is determined in the List of Annexes to the Order of the Government of the Chechen Republic No. 185/2000 dated June 21. 2000
3. Measures taken by the state to support exporters and develop the export of engineering products (including high technologies), participation in international cooperation, supplies of complete equipment, measures taken by the state to organize import-substituting industries
The most important program document defining the state policy for stimulating exports in the near future is the “Export Strategy of the Chechen Republic for the period 2006-2010”, adopted by the Government of the Chechen Republic in December 2005.
The process of supporting national exporters includes almost all government bodies involved in foreign economic activity (Ministry of Foreign Affairs of the Chechen Republic, Ministry of Finance of the Chechen Republic, Ministry of Regional Development of the Chechen Republic, Ministry of Agriculture of the Chechen Republic), a number of specialized structures: the insurance company "Export Guarantee and Insurance Company" (EGAP ), "Czech Export Bank" (CHEB), "Czech Agency for Trade Support" ("CzechTrade"), "Czech Centers", as well as public organizations - the Union of Industry and Transport of the Czech Republic, chambers of commerce, etc. The state allocates significant funds for export development.
In December 2006, the Ministry of Industry and Trade of the Czech Republic (MPT CR), together with the Ministry of Foreign Affairs of the Czech Republic (MFA CR), created the “Czech Council for Trade and Investment” (Council). The new structure was created to make strategic decisions regarding trade and economic policy and the protection of the economic interests of the Czech Republic abroad. The Council included representatives of government bodies, business unions and agencies such as, for example, Czechtrade and Chekhinvest.
The state-owned Czech Export Bank (CHEB) plays a significant role in providing state support to national exporters, which provides preferential loans:
1. Advance payment guarantee
Providing a guarantee for the seller for the amount of the advance payment or part thereof in case of untimely delivery of the goods or part thereof.
2. Bid bond (guarantee on offer when participating in a tender)
Providing a guarantee for the exporter to conclude a supply agreement if he wins the tender.
3. Performance bond (guarantee for fulfillment of the contract for the supply of goods)
Insurance of the exporter's obligations to fulfill the terms of the concluded contract.
4. Export credit
Providing a manufacturer or exporter with a loan with a repayment period of 2 to 10 years (12 years for certain goods) to finance the production of goods intended for export.
5. Export credit to the Buyer
Providing a loan to a foreign buyer with a repayment period of 2 to 10 years (12 years for certain goods) to finance Czech exports.
6. Loan for investment abroad
Providing a loan for investment abroad with a repayment period from 2 to 10 years (for certain goods 12 years).
7. Refinanced export loan
Providing a loan to the manufacturer's bank and the seller's bank to finance production for export with a repayment period of 2 to 10 years (12 years for certain goods).
8. Refinanced export loan
Providing a loan to the seller's bank to finance production for export with a repayment period of 2 to 10 years (12 years for certain goods).
9. Short-term export credit
Providing a loan to the manufacturer and seller to ensure production for export with a repayment period of up to 2 years (with the possibility of including collateral with materials, without export financing).
10. Short-term export credit in combination with export credit
Providing a loan to the manufacturer and seller to secure production for export with a repayment period of up to 2 years (with the possibility of including collateral with materials with export financing).
11. Short-term export credit
Providing a loan for export with a repayment period of up to 2 years.
12. Short-term export credit to the buyer
Providing a loan to the buyer to finance exports with a repayment period of up to 2 years.
13. Short-term refinanced export loan
Providing a loan to the manufacturer's bank and the seller's bank to finance production for export with a repayment period of up to 2 years.
14. Short-term refinanced export loan
Providing a loan to the seller's bank to finance production for export with a repayment period of up to 2 years.
Insurance company "Society for Guarantee and Export Insurance" (EGAP):
· support for export diversification in order to optimize insurance risks;
· effective use of companies' own financial resources (funds and reserves) in order to minimize subsidies from the state budget;
· bringing the structure of insured risks in line with the needs of exporters and current trends in the development of international markets, supporting project financing;
· deepening cooperation with business organizations in order to support state policy in the field of regional development and employment, priority support for export programs of enterprises that have already undergone restructuring;
· insurance and support for small and medium-sized exporters in cooperation with the CzechTrade agency, a new product is intended for them - “market penetration insurance”;
· increased attention will be paid to preventing damage and releasing debts, EGAP cooperates with the Ministry of Finance of the Czech Republic in matters of debt recovery at the international level through the Paris Club;
· use of membership in the International Union of Credit and Investment Insurers (“Berne Union”) and EGAP’s extensive international contacts for joint activities in international markets, in the form of providing guarantees and reinsurance.
Export strategy of the Czech Republic for the period 2006-2010. defines the following priorities:
· an increase in the share of exports per capita of the Czech Republic from the current 9,300 to 12,400 US dollars in 2010 and bringing this indicator closer to the level of “small” EU countries (Austria, Denmark and Sweden, where this indicator is in the range of 14,000- US$17,500);
· support not only the export of goods, but also services, investments and other forms of entrepreneurship that promote the promotion of Czech companies to the markets of foreign countries. During this period, the volume of exports of services per person is expected to increase from 760 to 1140 US dollars;
· supporting the growth of Czech exports and, above all, products with high added value;
· support and development of export opportunities of small and medium-sized enterprises in the export range of the Czech Republic,
· implementation of a system of export priorities on a territorial basis.
The Czech Republic is interested in maintaining and further developing close bilateral relations with Russia, which is the main supplier of energy resources for the Czech Republic and an important importer of Czech-made machinery and equipment.
The Ministry of Industry and Trade of the Czech Republic annually approves a list of international exhibitions with the so-called “official participation” of the Czech Republic. At the same time, small and medium-sized companies receive the right to compensation in the amount of 100% of the rent of the net exhibition space, but not more than 100 thousand crowns (or about 6,000 US dollars), and large ones (with a staff of more than 250 people) in the amount of 50% rent of net exhibition space, but not more than 100 thousand CZK. About CZK 270 million (USD 14.5 million) were spent on advertising and exhibition activities in 2007 from the state budget.
A special role is given to state support for small and medium-sized enterprises (hereinafter referred to as SMEs) as the main factor in the economic development of the country. To support SMEs, as well as to increase their competitiveness, measures are being taken to help entrepreneurs gain access, first of all, to consulting and information services and capital.
Thanks to targeted government support for Czech exporters, a number of contracts for the supply of complete Czech equipment were signed in 2007. The largest of them are: the contract of the Inekon Group company for the turnkey construction of two cement production plants in Iraq in the amount of 390 million US dollars; a contract for the supply of energy equipment to Turkey for the reconstruction of the Soma thermal power plant in the amount of about 400 million US dollars; a contract for the supply of equipment for a brewery to Vietnam by the company ZVU, Hradec Kralove, in the amount of about 11 million US dollars.
Currently, 21 projects are being implemented in Russia in the field of mechanical engineering, energy and agriculture, which involve the construction and complete supply of machinery and equipment. For their implementation, the CEB provided preferential loans in the amount of over $300 million.
The Czech Republic does not set itself a special task of organizing import-substituting industries, which is due to both limited industrial, scientific and technical potential, and the lack of its own energy resources and many types of raw materials. At the same time, by importing new modern technologies and equipment, it creates export-oriented production on their basis and thereby solves the problem of balancing foreign trade turnover.
Foreign economic relations are of particular importance for the Czech Republic, as a relatively small state with a diverse and at the same time specialized economy that requires the import of many types of raw materials. Maintaining sustainable rates of economic growth, implementing progressive structural changes, and increasing the efficiency of the national economy largely depend on the successful development of foreign economic relations. The development of economic cooperation between the Czech Republic and neighboring countries is favored by the fact that, in terms of their sectoral structure, the economies of the Czech Republic and each of these countries complement each other to a certain extent; their geographic proximity and the presence of main railways and highways connecting them are also important. The benefit of economic cooperation with these countries is also determined by the fact that the majority of enterprises in key sectors of heavy industry are concentrated near their borders, therefore the distances between suppliers and consumers are small and sometimes measured only a few tens of kilometers, which significantly reduces transport costs. Thus, the peculiarities of the sectoral and territorial structure of the national economy, combined with close proximity, create great opportunities for cooperation in a wide variety of areas of economic life.
During the years of the existence of the socialist camp, the main mutually beneficial economic ties of the Czech Republic developed with the socialist countries, which made it possible to solve the problem of creating the necessary prerequisites for the stable and uninterrupted development of the national economy. The diverse connections of the Czech Republic with socialist countries through the specialization of production cooperation in leading industries, the presence of a guaranteed sales market contributed to the organization of large-scale production, strengthening the position of the Czech Republic in the system of the international socialist division of labor as the most important manufacturer and exporter of machinery and equipment.
The wide range of exports of mechanical engineering products was dominated by complete equipment - rolling mills for ferrous and non-ferrous metallurgy, heavy power equipment, equipment for sugar factories and breweries. Metal-cutting machines, trucks and cars, tractors and electric locomotives are also exported.
The imports of the Czech Republic are dominated by fuel and raw materials, mainly from the oil and gas complex. Crude oil and natural gas come to the Czech Republic mainly from the Russian Federation through pipelines built within the framework of the Council for Mutual Economic Assistance of the countries of the socialist camp. Machinery and equipment are also imported in large quantities. The import of advanced technology contributes to the accelerated development of the country's industry.
After the collapse of the socialist camp, the Czech government took a new political course and placed its main emphasis on the development of bilateral relations with the countries of Western Europe and on attracting foreign investment into the country into the Czech economy (mainly Germany, France and Italy). Many Czech enterprises were sold to foreign corporations, which allowed the Czech economy to be more closely integrated into the general economy of Western Europe. In 1993, exports amounted to 12.6 billion US dollars, imports - 12.4 billion dollars.
- 240.95 KbFEDERAL AGENCY OF RAILWAY TRANSPORT
Federal State Budgetary Educational Institution
higher professional education
"Ural State Transport University"
(Federal State Budgetary Educational Institution of Higher Professional Education, UrGUPS)
Department: World Economy and Logistics
Course work
Characteristics of foreign trade of the Czech Republic
Completed by: student of group ME-310
Denisova E.S..
Checked by: Doctor of Economics, Professor
Andreeva E. L.
Ekaterinburg
1. Czech Republic as one of the world’s leading exporters…………………4 |
1.1 Dynamics of foreign trade objects……………………….....4 |
1.2 The importance of exports for the Czech economy……………………..7 |
1.3 Competitive advantages of Czech exports…………..….9 |
2. Trade structure of Czech exports……………...………........... .13 2.1 Characteristics of the product structure as a whole……………..……13 2.2 Leading positions in the export of mechanical engineering……...………16 2.3 Other active export items………………………….18 |
3. Geographical structure of Czech exports and imports……......20 |
3.1 Trade with main partner countries………………..20 |
3.2 The role of Belarus in trade with the Czech Republic.………………………….22 |
3.3 Trade and economic cooperation between Russia and the Czech Republic……..24 |
INTRODUCTION
The topic “Characteristics of foreign trade of the Czech Republic” is interesting to me, first of all, because the Czech Republic is an industrial republic with one of the most stable and successfully reformed economies among the former socialist countries.. This country manages to very effectively use its own natural favorable conditions (the Czech Republic has very favorable location in the very center of Europe) for the development and prosperity of the country.
The relevance of this topic is due to the fact that the Belgian economy at the beginning of the 21st century is in a phase of complex structural restructuring, the process of searching for a new industrial specialization in the world economy.
The purpose of my work is to characterize the foreign trade of the Czech Republic as a whole. The work used statistical, correlation and comparative research methods.
The main questions included in the course work are:
1. Czech Republic as one of the world's leading exporters
2. Trade structure of Czech exports
3. Geographical structure of Czech exports and imports
The novelty of this course work is that it presents statistical data for the 2010-2011 period, as well as for the current year 2012.
- CZECH REPUBLIC AS ONE OF THE WORLD'S LEADING EXPORTERS
- Dynamics of foreign trade objects
The Czech Republic has a very favorable location in the very center of Europe, which leads to the high development of international trade. The country's economy cannot exist without foreign trade. The value of Czech exports and imports increases every year. In terms of foreign trade per capita, the country is one of the leaders, ahead of countries such as Japan, Great Britain, France or Italy.
The Czech Republic's production capacity exceeds the capacity of its domestic market, therefore a significant part of the country's GDP, namely 80%, is export-oriented. At the same time, Czech industry began to focus on the production of goods that do not require large electricity consumption. At the same time, due to the lack of a sufficient mineral resource base in the country, many types of energy resources and raw materials have to be imported, which determines the high degree of dependence of the Czech economy on foreign economic factors.
The Czech Republic's share in world foreign trade is: for exports - 0.5%, for imports - 0.6%. (34 and 32 places, respectively).
Externally, the trade turnover of the Czech Republic is characterized by dynamic growth and development. During the existence of a separate state – i.e. Since 1993, trade turnover has approximately tripled, with trade turnover with EU countries increasing by as much as 300%.
According to the Czech Statistical Office, the foreign trade turnover of the Czech Republic in 2011 increased by 20.8% compared to 2010 and amounted to 313.6 billion US dollars. Czech exports grew by 21.9% to $162.2 billion, while Czech imports grew by 19.6% to $151.4 billion. The trade balance of the Czech Republic amounted to 10.8 billion US dollars.
- GDP (2011) = 217 billion dollars
- Export (2011) = 162.2 billion dollars (increased 21.9%)
- Import (2011) = 151.4 billion dollars (increased 19.4%)
- WTO=162.2+151.4=313.6 billion dollars. (increased by 20.8%)
- Balance=162.2-151.4=10.8 billion dollars (positive)
- Export intensity=162.2/217*100= 74.75%
- Import intensity=151.4/217*100= 69.77%
- Human Development Index (HDI) - 36th place (2010), 0.865 – 27th place (2011)
Table 1.1- Trade turnover of the Czech Republic
Sources: Czech Statistical Office, 2012, Czech National Bank, Czech Ministry of Finance
Based on the data indicated in the table, the following conclusions can be drawn: Czech exports and imports are increasing every year, excluding the indicators of the crisis year of 2009. Trade turnover in the Czech Republic in 2009 decreased by 25%. At the same time, export volumes are ahead of imports, as evidenced by a positive balance, which means that trade turnover is increasing, which has a positive effect on the country’s economy.
Table 1.2 - GDP dynamics of the Czech Republic
GDP, billion dollars |
GDP np soul us. |
GDP growth, % |
|
The Czech Republic is characterized by average GDP indicators; in the period from 1990 to 2010, GDP has been steadily increasing, while demonstrating high growth rates. The GDP per capita in the Czech Republic is very high.
- The importance of exports for the Czech economy
Table 1.3 - Czech exports, 1990-2011
Export, billion dollars |
Share in world exports, ‰ |
Share of exports in GDP, % |
Export per capita, dollars |
Export growth rate,% |
|
Fig. 1.1 – Czech exports, 1990-2010
Fig. 1.2 – Dynamics of growth rates of Czech exports,%, 1991-2010.
Fig. 1.3 – Share of exports in GDP in the Czech Republic, %, 1990-2010.
Based on the above data, we can conclude that exports play a very important role for the Czech economy. The country ranks 34th in the world in exports. Belgium's export volume over the past five years has reached $157 billion. The share of exports in GDP in the period 2005-2011 ranges from 64.6 to 72.4% (excluding the 59.7% figure for the crisis year of 2009) The growth rate of exports in 2005-2010 are also high from 116.7 to 116.7% (excluding the 80.7% figure for the crisis year 2009). In terms of foreign trade per capita, the country is one of the leaders, ahead of countries such as Japan, Great Britain, France or Italy. The above graphs reflect the findings clearly.
- Competitive advantages of Czech exports
Exporting from Belgium has a number of advantages.
The development of economic cooperation between the Czech Republic and neighboring countries is favored by the fact that, in terms of their sectoral structure, the economies of the Czech Republic and each of these countries complement each other to a certain extent; their geographic proximity and the presence of main railways and highways connecting them are also important. The benefit of economic cooperation with these countries is also determined by the fact that the majority of enterprises in key sectors of heavy industry are concentrated near their borders, therefore the distances between suppliers and consumers are small and sometimes measured only a few tens of kilometers, which significantly reduces transport costs.
The level of education, life expectancy and GDP per capita in the Czech Republic is very high, which determines the fact that it ranks 28th in the world in terms of HDI with an indicator of 0.841 and, accordingly, belongs to the group of countries with a very high level of human development.
The Czech Republic has a very favorable location in the very center of Europe, which leads to the high development of international trade.
The Czech Republic's production capacity exceeds the capacity of its domestic market, therefore a significant part of the country's GDP, namely 80%, is export-oriented. At the same time, Czech industry began to focus on the production of goods that do not require large electricity consumption.
In 2007 The growth rate of industrial output significantly accelerated and amounted to 8.6%. Industrial employment increased by 8%, and labor productivity grew faster than wages.
Short description
The purpose of my work is to characterize the foreign trade of the Czech Republic as a whole. The work used statistical, correlation and comparative research methods.
The main questions included in the course work are:
1. Czech Republic as one of the world's leading exporters
2. Trade structure of Czech exports
3. Geographical structure of Czech exports and imports
The novelty of this course work is that it presents statistical data for the 2010-2011 period, as well as for the current year 2012.
Content
Introduction………………………………………………………………………………….3
1. Czech Republic as one of the world’s leading exporters…………………4
1.1 Dynamics of foreign trade objects……………………….....4
1.2 The importance of exports for the Czech economy……………………..7
1.3 Competitive advantages of Czech exports…………..….9
2. Trade structure of Czech exports……………...………............13
2.1 Characteristics of the product structure as a whole……………..……13
2.2 Leading positions in the export of mechanical engineering……...………16
2.3 Other active export items………………………….18
3. Geographical structure of Czech exports and imports……......20
3.1 Trade with main partner countries………………..20
3.2 The role of Belarus in trade with the Czech Republic.………………………….22
3.3 Trade and economic cooperation between Russia and the Czech Republic……..24
Conclusion……………………………………………………….…..30
List of references…………………..…………..32
The Czech Republic is located in Central Europe; it was formed as an independent state in January 1993 after the collapse of communist Czechoslovakia. It is one of the most developed industrial countries in Eastern Europe and has the second-highest economic development indicator after Slovenia.
The country's population is 10.5 million people as of 2015, with a population density of 133 people per square kilometer.
Industry of the Czech Republic
(Automobile plant of the popular Czech brand "Skoda")
The economic system of the Czech Republic is one of the most stable and successful among the countries of the post-communist space. Its success is based on achievements in mechanical engineering, electronics and electrical engineering, chemistry and petrochemistry, the food industry, metallurgy, the service sector, construction, and the production of glass and porcelain.
In mechanical engineering, the leading industry is the automotive industry; the Czech Republic produces the largest number of cars per capita in Europe (after Slovenia). Leading manufacturers are Skoda in Mladá Boleslav, Toyota Peugeot Citroën Automobile Czech in the Kolin-Ovčary industrial zone. Every year the country ranks among the top 15 countries in the world in terms of the number of cars produced per year. The Czech Republic is also a manufacturer and exporter of universal machine tools with software, metal-cutting machines, rolling machines for ferrous and non-ferrous metallurgy, tractors, electric locomotives, trolleybuses, trams, equipment for the energy industry, for sugar and brewing production.
(Temelin Nuclear Power Plant)
The development of the chemical industry in the Czech Republic is hampered by an insufficient amount of chemical raw materials and energy; its centers are located in the center and north of the Czech Republic.
Czech porcelain and glass are popular worldwide. Glass products are produced in factories in Jablonec na Nis, Novy Bor, Podebrady, Karlovy Vary. The center of the porcelain and ceramics industry is located in South Moravia and Western Bohemia.
(Brewery "Krusovice")
The Czech Republic is one of the largest suppliers of beer in Europe. It produces about 20 million hectoliters of beer per year, most of which is sold in the country, and a smaller part is exported. Czech beer brands - Staropramen, Budvar, Heineken, Prazdroj.
In the mining sector, the leading company is Kamenolomy CR, which is part of an Austrian syndicate with subsidiaries throughout Europe and owns 30 quarries for the extraction of various construction raw materials (gravel, sand, rubble stone, etc.) in the Czech Republic. The annual production volume is 500 thousand tons.
Agriculture of the Czech Republic
Czech agriculture has its own ancient traditions, and despite the fact that the modern Czech Republic is a powerful industrial country, it occupies not the last place in its economy. Favorable climatic conditions contribute to the cultivation of a large number of vegetables, fruits, grain crops, and livestock.
Traditional agricultural products for the Czech Republic are grain (wheat, barley, oats, rye), potatoes (more than 700 thousand tons per year), sugar beets (3 million tons per year), table and wine grapes (in South Moravia), various fruits (early, late and winter varieties of apples, pears, plums, cherries).
In livestock farming, the main sectors are pig farming, cattle breeding (meat and dairy) and poultry farming (chickens, geese, turkeys, ducks). There is a high level of automation in Czech farms and farms.
At the present stage of development, the country’s agriculture is not going through the best of times, tightening environmental requirements, the emergence of diseases such as bird or swine flu in the country, and the general economic crisis have led to the fact that agricultural products have dropped significantly in price, and the area of arable land is decreasing Every day, a large number of residents of villages and villages are moving to cities, farming is increasingly considered a very risky activity that does not bring profit, but only losses. Without proper government support, the Czech Republic risks being left without its own agricultural base and becoming completely dependent on imports.
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