The number of investments concluded by CzechInvest dropped significantly last year. The government agency for attracting investments helped to secure over 80 investment projects worth 36.7 billion crowns, company representatives announced on Monday. That is a drop by two fifths on the previous year, when investments, both foreign and local, amounted to 63 billion crowns.
Czech piano maker Petrof has had its most profitable year since the global
financial crisis, earning more than 12.5 million crowns in 2018.
Petrof said 90 percent of its sales come from abroad, with its pianos sold in 65 countries worldwide, including China, which has become its largest market. Domestic sales grew 55% compared to the previous year.
The Hradec Králové-based company has been making pianos since 1864. Petrof said it hired another 50 employees in 2018 to meet demand.
During the first half of 2019, the Czech Republic registered a three year low in the amount of new companies being set up, data from the website Bisnode shows. A record amount of businesses, 7964, was also shut-down during the same measured period. Overall, the number of companies registered in the country grew to just under 450,000.
There are now 12,400 Czech companies based in tax havens, the fewest since
2011, after a record 405 moved operations this year, the consultancy
Many tax havens have largely ceased to perform their core functions, namely securing their owners’ anonymity and tax optimization, accord to the consultancy.
A total of 157 Czech firms left the Netherlands this year and 147 left the United States. Dozens also moved their headquarters from Cyprus (36 companies), Luxembourg (32) and the British Virgin Islands (22).
Bisnode estimates that only 2.47 percent of Czech firms are now controlled from tax havens. It says destinations such as Hong Kong and the United Arab Emirates are increasingly popular.
Czech firms are expected to curb their investments this year, as a result
of the workforce shortage, and the expected slowing of the German and Czech
economies, according to a prediction released by the European Commission.
The Czech export-oriented economy is expected to feel the impact of an economic slowdown in Europe, particularly in its main export destination, Germany. Despite this the Commission predicts solid growth, driven mainly by household consumption.
Companies are expected to invest mainly into digitalization and automated technologies.
The Czech Republic’s year-on-year industrial production figures grew by 3.2 percent in May, 0.1 percent less than in the previous month, according to figures released by the Czech Statistics Office on Monday. The main drivers of growth were the automobile industry, as well as plastic and energy production. The country’s foreign trade surplus experienced a year-on-year rise of CZK 17.2 billion, reaching CZK 24.4 billion.
The Czech foreign trade surplus rose in May by 17.2 billion crowns in
annual terms, to 24.4 billion crowns, according to preliminary data
published on Monday by the Czech Statistical Office.
Exports grew year-on-year by 8.1 percent to 332.5 billion crowns and imports by 2.5 percent to 308.2 billion crowns.
The balance was positively influenced mainly by the motor vehicle sector, where exports increased by 11.5 billion crowns. At the same time, the deficit in refined petroleum products, chemicals, and oil and natural gas decreased.
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