Financial experts have confidence in the Czech economy because of the EU’s promotion, which has altered the country’s environment for speculation. The subsequent inflows of foreign interest into the economy, which occurred long before the country was promoted to the EU, serve as an example of this. One of the major benefactors of the unprecedented direct interest in the region of Central and Eastern Europe today is the Czech Republic. In particular, the introduction of several venture-stimulating factors in 1998 sparked enormous inflows of foreign direct investment into the country in the years that followed. By the middle of 2006, over EUR 46 billion of foreign direct investment had been registered in the country since 1993.
Naturally, the country has attracted a significant amount of foreign direct investment due to the ongoing privatization of outstanding government holdings in state-claimed companies, and the favorable economic environment in the country will continue to attract new greenfield projects. Significant foreign investors in the Czech Republic include Germany, which accounted for almost 27% of all foreign direct investments between 1993 and mid-2005. The Netherlands (15%), Austria (10%), France (8%), Spain (6%), and the US (6%), in order of decreasing percentage.
Assembling companies accounted for around 33% of all unidentified direct ventures, primarily in the categories of food and tobacco, base metal products, refined oil and synthetic compounds, and equipment and gear. The Czech Republic surprisingly holds a competitive advantage in the fields of mechanical design and synthetic chemicals. The country also maintains a significant number of well-managed food sector groups. Furthermore, the Czech Republic has benefited from the flow of automobiles and technology manufacturing from Western Europe into the country. Notable outsider investors include Matsushita, Siemens, Philips, Volkswagen (auto parts), Denso (auto parts), and others. Other areas of uncharted territory that are heavily focused on speculation include money (18%), transportation, exchange, and stockpiling and trading (17%), exchange, lodging, and cafes (12%), and land (10%).
