CCzzeecchh TTrraaddee FFooccuuss News from the Czech Commercial Offices in the United States / January 2008 Economic Briefs Brief Investment Review of 2007 Investment Briefs Brownfield Regeneration in the Czech Republic Nanofiber Technology Companies and Businesses Newstin Czech Metal Production Economic Policy Brief Czech Companies Looking for Representatives, Importers, Distributors Tradeshows and Exhibitions Czech Commercial Offices in the United States Business and Trade Websites Subscription Information ECONOMIC BRIEFS The number of Czech households have manufactured over eight million information on the project is on which have a computer has soared in motor vehicles. www.imigracecz.org. the last fifteen years and while at end- 1992 six out of 100 homes had a The hourly wage in the Czech Czechs spend billions of crowns computer, now 40 percent of Republic has increased the fastest annually on furniture, and the three households do. The internet was among other EU newcomer states since largest retail chains selling it, namely completely inaccessible to Czech the country's accession to the EU in Ikea, Asko Nabytek and Sconto, households in 1993 when the Czech 2004, from 5.47 EURO ($7.4/130 generated combined sales worth 8.2 Republic was established, while CZK) to 7.14 EURO ($10/182 CZK) in billion CZK ($470 million) in 2006, up currently a third of the 4.5 million 2006, a rise of 30.5 percent. from 7.8 billion CZK ($447 million) in households has access to the web. Over 2005. The country has some 4,500 a quarter of the households have high- In Q3 2007, the average gross furniture producing companies speed Internet. monthly nominal wage was 21,470 employing 45,000 staff. CZK ($1,220) which is by 7.6% more Real agricultural income per worker in the year-on-year comparison, the The state’s application to register increased by 20.6 percent in the Czech real wage grew by 5.0%. In the the term Ceske pivo (Czech beer) as Republic last year, the second largest business sphere, the average wage rose a protected geographical designation is growth among the 27 members of the by 7.6%, in the non-business sphere by moving forward. For the first time, the European Union. 7.5%. In Q1-Q3 2007, the average application appeared in the official wage increased by 7.6 % and reached journal of the EU, meaning it fulfills The number of self-employed people 21,119 CZK ($1,200), the real wage all the requirements mandated for in the Czech Republic increased by went up by 5.3%. approval. The proposal can now only 14,000 to 918,000 in 2007 after several be halted by a third-party complaint. years of decline. Czech vegetable growers raised market production to 249,299 tonnes in The share of renewable sources used Prague's Ruzyne airport cleared a 2007, an increase of some 12,500 to generate electricity fell to 4.7 record 12.44 million passengers in tonnes against 2006. percent last year from 4.9 percent in 2007, up 7.5 percent year-on-year. 2006. According to recently proposed Czech government debt increased by standards from the European Union, Czech customs officers caught 30,322 89.9 billion CZK ($5 billion) to 892.3 the Czech Republic will have to raise drivers who avoided to pay toll on billion CZK ($51 billion) in 2007. this share to 13 percent by 2020. Czech motorways and dual carriage Analysts say the country's current ways, and fined them nearly 34 million public debt is relatively low and stable The Czech Republic ranks eighth CZK ($2 million) in 2007. Still, the compared to the situation in among the ten countries with the number of toll evaders is small, 83 on neighbouring countries. lowest-paid IT managers according to average a day, compared to the number research conducted by Mercer. Of the of 30,000 to 40,000 lorries paying toll Hundreds of foreigners - 862 - have ten countries with the highest-paid IT daily. joined the Czech Labour Ministry's managers, six are in Western Europe, project aimed at attracting foreign along with the US, Canada, Hong Production of passenger and small specialists to the Czech Republic, with Kong and Australia. utility vehicles in the Czech Republic Ukrainians making up the largest part. increased by a tenth to a record In the 2002-2006 period the Czech Flights to London, Moscow, 932,016 units in 2007. Since the fall of government allotted 21.3 million CZK Amsterdam and Brussels shall begin communism in 1989, Czech car makers ($1.2 million) for the project. More operating out of Ostrava’s Leos Janacek Airport in March of 2008. Czech Trade Focus 1 © January 2008 Preparations for the tender to choose Bontonfilm estimated its losses from a airlines, which will operate the flights Large retail chains on the Czech theft at 5.5 million CZK ($317,000) with the help of subsidies totalling 709 market further consolidated their done by a teenager, who videotaped million CZK ($40 million) from the positions in 2007, and the 200 biggest The Simpsons Movie and illegally Moravia-Silesia region, are currently firms generated sales worth a record posted a copy of it on the internet. underway. 516 billion CZK ($29 billion) between Bontonfilm is the movie’s local October 2006 and September 2007. distributor. A settlement was reached Czech farmers will earn 7.2 percent with the 19-year old, who agreed to more on average in 2008 than in 2007, Czech Internet servers registered a pay a 150,000 CZK ($9,000) fine and in line with the collective agreement record-high 5.9 million visitors in publicly apologized. signed by representatives of farmers' December last year. The Seznam.cz unions and the associations of portal was the most frequently visited The Biotechnology and Biomedical entrepreneurs in agriculture. server. Centre (BIOCEV) has been established near Prague, Czech Spas saw their profits drop to 4.4 A special treaty allowing for Czech Republic. It is a joint project of the percent of revenues in 2006, from 9 firms and scientists to take part in the Academy of Sciences and Charles percent in 2004. One spa said it was U.S. missile defence project might be University in Vestec. It wishes to expecting its electricity costs alone to reached by the end of June. The United attract top scientists from the Czech rise 13 percent this year. Hardest hit States would like to build a radar base Republic and abroad in hopes of have been spas tailored to domestic in the Brdy military district, some 90 establishing a comprehensive Central clients, rather than spas favored by km southwest of Prague, that together European biotechnology park. Germans or Russians. with a base for ten defence missiles in Poland would be part of the U.S. The country’s inflation rate Air traffic over the Czech Republic's missile shield project. territory has more than doubled since continued its growth, with consumer the year 2000 when 308,000 planes prices rising 0.5 percent from flew over the country, while 635,000 The new Nouzka II industrial zone November to December. The overall planes were expected to fly over the has opened in Vyskov. Companies are inflation rate now sits at 5.4 percent. Czech lands by the end of 2007. expected to build facilites there and The rise is largely due to rapid growth employ several hundred people. in food prices. Czech building societies granted loans worth record 74 billion CZK ($4 Czech jobless rate increased to 6 Czech natural gas consumption billion) in 2007, a record-high amount percent in December and the number decreased by 11 percent to 8.645 and a growth of 40 percent year-on- of job seekers ready to work billion cubic metres in 2007. The main year. immediately increased to 331,696 reason behind the decline was the people. warm weather which reduced supplies Electricity prices are expected to to households. continue rising at least 10 percent for the next three to six years. BRIEF INVESTMENT REVIEW OF 2007 A record of 182 investment projects worth nearly 71 billion CZK ($4 billion) were mediated by the Czech government agency for the support of business and investment, CzechInvest. The investors promised to create 30,598 new jobs in the Czech Republic. For the first time, Czech companies were the most active investors last year promising investments worth 15 billion CZK ($852 million) within 55 projects. German investors came second with 27 projects worth 11.5 billion CZK ($653 million). However, the overall volume of last year's investments was lower compared with 2006 when CzechInvest participated in 176 projects worth 114.6 billion CZK ($7 billion). The reason is that among the projects was the new plant of Korean car maker Hyundai with construction costs planned at roughly 30 billion CZK ($2 billion). Most of the investors targeted south Moravia in 2007, with 3,900 people to find jobs there in 40 new businesses worth 13 million CZK ($739,000). INVESTMENT BRIEFS Hyundai, IBM and Visteon-Autopal all companies that invested in the investment amount worth 30 billion are companies which made the greatest Czech Republic in 2006. Hyundai CZK ($2 billion) and creation of 3,000 contributions to the development of the Motor Manufacturing Czech brought new jobs. IBM Global Services Czech eonomy in 2006 and, hence, the greatest economic benefit in the Delivery Center Czech Republic won won the Investor of the Year 2006 manufacturing industry for its the business support services category competition. The competition included automobile plant in Nosovice with an for its center for outsourcing Czech Trade Focus 2 © January 2008 infomartion technologies in Brno with engineering fields shall be employed operational within three years.