CCzzeecchh TTrraaddee FFooccuuss News from the Czech Commercial Offices in the United States / Summer 2016 Macroeconomic Data of the Czech Republic Czech Missions to the US in May Economic Briefs Investment Briefs TechCrunch Disrupt NYC 2016 Czech Streetcars Service the Streets of the U.S. Capital Czech-made Soccer Court Donated to DC United Academy Companies and Businesses Tradeshows and Exhibitions Czech Commercial Offices in the United States Business and Trade Websites MACROECONOMIC DATA OF THE CZECH REPUBLIC INDICATORS 2014 2015 Latest available data GDP (%, y-to-y) 2.0 4.2 3.0 Q1 ´16 Inflation (%, y-to-y) 0.4 0.3 0.4 May '16 Unemployment (%, y-to-y) 7.7 6.6 5.4 May '16 Industrial Production (%, y-to-y) 4.3 7.1 4.2 April '16 Exchange Rate CZK/USD (average) 20.7 24.6 23.9 May '16 Source: Czech Statistical Office CZECH MISSIONS TO THE US IN MAY The Czech Republic has, for the first time in history, sold more goods to the United States than to Russia. Thus, the U.S. has become the most important market outside of Europe for the Czech Republic. This affirms the long-standing and continuous work of many Czech companies that have decided to do business in the U.S. To help increase the number of successful companies in the U.S. the Embassy of the Czech Republic in Washington, DC, organized a business mission to Charlotte, North Carolina, and Columbia, South Carolina, during the days of May 11-13. Companies ranging from IT, produce of beverages and food, office furniture, technology for elevators to sports equipment had meetings with the Chamber of Commerce in Charlotte, Home Trust Bank, K&L Gates, and McGuireWoods regarding business in North Carolina. Some of these companies are now thinking of returning to Charlotte to establish a company or a branch there. Charlotte is very popular among European firms. Hence, the European community in Charlotte is another attraction for Czech companies. In Columbia, Deputy Minister of the Ministry of Foreign Affairs Miloslav Stasek and the companies met with Lieutenant Governor Henry McMaster and the Department of Commerce. In Charlotte and Columbia the companies were also accompanied by Czech energy officials who were interested in U.S. experiences in smart grids. Energy officials spent two days in Washington, D.C., before traveling to Charlotte, where they met federal agencies involved in management and innovation in electricity networks. Czech Trade Focus © 1 SUMMER 2016 The Czech Republic wants to improve its citizens´ e-skills and better manage its public services (e-gov). That is also the reason why the Speaker of the House of the Czech Parliament Jan Hamacek, together with the Chairman of the Economic Committee Ivan Pilny, brought around 20 Czech tech companies in May to Washington, D.C., to speak with GE, Honeywell, Apple, Google, and the FAA about technologies such as cashless payments, drones, car-to-car communication or the Internet. Since some participating firms are considering opening business in the U.S., they were also interested in learning about the economic situations in Fairfax County, VA, San Francisco and Chicago where they met with federal agencies involved in management and innovation in electricity networks. ECONOMIC BRIEFS Prague has become one of the most construction companies and many an association that compares popular destinations among are looking forward to the summer economic buying power, cost of Airbnb travellers. More than of 2016 as the largest project of its rent, cost of food and other 10,000 people in the Czech kind gets underway – an initiative services with the cost of living in Republic are currently offering to repair or renovate the country’s New York. their rooms or flats for rent via the train stations many of which will Airbnb home-rental site, which is need a lot more than a new paint. Miners in underground mines may an 86 percent increase on the Roughly 60 of the country’s most- be able to retire seven years previous year, the economic daily used railway stations will need to earlier than other workers, that is E15 reported. According to the be renovated and in 2016 alone at the age of 56 years now, data provided by Airbnb, Czechs half-a-billion crowns (20.9 million according to proposed changes in accommodated some 362,000 USD) will go into their repair. In an amendment to pension guests in 2015. The most popular the next five years, an additional insurance that the Chamber of destination among Airbnb 2.5 billion crowns (104.3 million Deputies, the lower house of Czech travellers is London, followed by USD) will be spent. parliament, passed on May 4. The Paris in the second place. Prague bill must yet be approved by the shares third spot with Rome and Czech consumers are increasingly Senate, the upper house, and Barcelona. Most of the shopping online, with overall signed by President Milos Zeman. accommodation offers, more than revenues predicted to reach almost 7,000, are in the Czech capital. CZK 100 billion (4.2 billion USD) Train travel between the two The second most popular town is this year. What’s more, though largest Czech cities, Prague and Liberec, followed by Karlovy Vary Czechs currently lag behind some Brno, should be faster starting in and Brno. nations in this respect, they are December. Planned changes will using their mobile phones to carry shave five minutes off that journey, The Czech Republic’s economic out purchases ever more often. while rail links between the capital growth accelerated substantially Online retailers in the Czech and Ceske Budejovice will speed and was mainly fueled by the Republic saw an 18 percent year- up even more. manufacturing sector. on-year upswing in receipts in the first quarter of 2016. Growth was 9 The town of Humpolec, in the percent lower than in the final This summer will see the largest Czech-Moravian highlands, has quarter of 2015. renovation project of its kind in come first in an annual competition the Czech Republic – the called Mesto Pro Byznys (Best renovation of the country’s main High economic buying power Town for Business) organized by train stations, many in marked together with the low cost of living the weekly Ekonom, published by disrepair. Construction contracts makes the Czech Republic ninth Economia. This year, the eighth are worth an estimated three billion country with the easiest way of inception saw 205 towns and cities crowns (125.2 million USD) or life and one of the cheapest in take part. more. Last year was rated as a regards to cost of living. This was good one for many Czech determined by GoBankingRates, Czech Trade Focus © 2 SUMMER 2016 INVESTMENT BRIEFS In coming years, the company Engineering & Quality Manager polyclinic and CZK 40m (1.7 Trinecke Zelezarny will invest Pavel Kafka has told CIANEWS million USD) in the repair of CZK 12bn (500.7 million USD) that Changdong’s activity is urology operating rooms in 2016. into development. CZK 2bn (83.5 expanded to the pre-production These reconstruction projects will million USD) of this total will be phase with the centre’s opening. be partially covered from subsidies invested into environmental The goal is to participate on the from the founder. Further, the improvements. In 2015 it reduced development of new products for hospital will replace devices at the volume of dust to 310 tons per the European market. Besides clinics from its own resources. For year with a steel production developing the centre gradually, CIANEWS, this information was volume of 2.5m tons. The company the company wants to focus on the provided by marketing and PR declared a reduction in dust by improvement of after-sales department head Ludmila roughly one third. General services. The services were Simackova, who added that this manager Jan Czudek said that the previously secured by contractual year’s personnel costs should be actual y/y drop in dust is 45 %. partners, while newly the company 4% higher (by CZK 125m, 5.2 wants to insource as much of the million USD). The hospital Chinese LCD TV set manufacturer services as possible. currently lacks 90 nurses, while Changhong opened its European there are enough physicians. research and development (R&D) Motol University Hospital will centre in the Czech-Chinese invest CZK 311m (12.9 million industrial zone in Nymburk. USD) in the reconstruction of a TECHCRUNCH DISRUPT NYC 2016 New York City was the scene of one of the most important events for start-ups in the world, the TechCrunch Disrupt 2016. Thanks to economic diplomacy, several Czech start- ups, which are seeking partners for expansion and financing for the development of their products or services, were able to take part in the three day conference held on May 9-11. The Consulate General of the Czech Republic in New York in cooperation with the Czech ICT Alliance and CzechInvest supported the participation of the four Czech startups, Agent Balance, Clever Monitor, Databreakers and Sourcy, at the prestigious conference. These Czech companies presented a diverse range of technological innovation, such as sophisticated contact management, direct marketing, data analysis and prediction as well as better control of social media. "It is not easy to succeed in the highly competitive US market. The opportunity to find a strong partner to help Czech startups with their quality products is therefore very important and TechCrunch is, in this respect, a unique platform," said Martin Dvorak, the Consul General of the Czech Republic in New York. Visitors were also able to obtain general information about the Czech ICT and the Czech Republic’s investment environment at the information booth of the Czech Republic, where the Economic Counsellor of the Consulate General of the Czech Republic in New York City and representatives of CzechInvest were available for discussion.