Radio Praha: Czech economy booming despite growing oil prices - by Daniela Lazarova

Marketa Sichtarova

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Czech economy booming despite growing oil prices - by Daniela Lazarova

The Czech economy is running at full steam - the country exports a full 60 percent of its overall production, the job market is growing and the crown is strengthening. Banks are now trading the euro for 28 crowns and by the end of next year it is expected to sell for under 27. Czech exports to the EU are on a par with those of Poland whose economy is two and a half times bigger. The boom in exports is fuelled primarily by the auto-motive industry, but other traditional exporters are also doing exceptionally well. Economists attribute this to the country's location in the very centre of Europe, its proximity to the rich German market, its cheap labour and investment incentives. Economist Marketa Sichtarova says it gives the country an edge over bigger post-communist rivals close-by:
"I believe that the location of the country is its major advantage because this is something that influences foreign investors to a considerable extent. In this respect we have a major advantage in comparison with, for example, Slovakia. Another big advantage is in the fact that the Czech Republic's infrastructure is better than that of Poland, Hungary or Slovakia. "