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Economy: Development and potential
The territory of the Czech Republic was one of the most economically developed parts of Europe at the beginning of the last century. It was the most industrial part of Austria-Hungary. After the establishment of an independent state in 1918,
then ranked among the top twenty developed states in the world.
Agriculture is an integral part of the Czech economy. Its importance lies not only in the production of foodstuffs and other agricultural products, but also in the preservation of countryside and an ecological approach to the environment.
Let´s take a walk through the times and see how economic trends have changed in the Czech lands from the time of the Middle Ages through today.
The accessibility and range of services in the Czech Republic
has virtually reached the standards of the European Union. Services
include support for tourism, and also services for businesspeople and
students. The telecommunications, banking, accommodation and
gastronomic markets have developed rapidly. Healthy competition has
forced prices down and the rapid increase of quality has attracted many
The Czech Republic has a long tradition especially in a heavy
industry - in metallurgy and mechanical engineering related to the raw
materials resources. The auto, rubber making, armament, energy and
consumer goods industries are very important, as are traditional industries such as glass-making.
The interest of foreign investors in Czech industry is also apparent. Some of the largest industrial investments include Volkswagen's investment in Mladá Boleslav's Škoda and the investment of Asian auto and electronics manufacturers. South Korea's Hyundai will begin production at its Nošovice factory in October 2008. Japan's IPS Alpha, a strategic partnership between Hitachi, Panasonic and Toshiba, has officially confirmed its plan to build a factory in the Czech Republic to build LCD displays, an investment valued at CZK 2.6 billion.
The strategic position of the Czech Republic as Europe’s transportation hub came to the fore immediately after the Velvet Revolution in 1989. That year marked the beginning of the modernization and development of the country’s infrastructure in preparation for the Czech Republic’s entry into the European Union. The importance of the Czech Republic in the area of transportation is obvious and is expected to grow in the future.
Operator: Ministry of Foreign Affairs of the Czech Republic