Business and Investment Development Agency

Stable Political and Economic Environment

Stable Political and Economic Environment

Stable Political and Economic Environment

The Czech Republic is a parliamentary democracy and one of the most advanced CEE countries. Its economic policy is consistent and predictable. An open investment climate is a key element of the Czech Republic’s economy.

The Czech koruna is fully convertible. All international transfers (e.g. profits and royalties) related to an investment can be carried out freely and without delay. The country’s strong and independent central bank (the Czech National Bank) has maintained an extraordinary degree of currency stability since 1991.

Czech legislation is in accordance with the regulations of the European Union. Furthermore, Czech commercial, accounting and bankruptcy laws are compatible with western standards. Under Czech law, foreign and domestic entities are treated identically in all areas, from protection of property rights to investment incentives. The government does not screen any foreign investment projects with the exception of those in the defence and banking sectors.

The Czech Republic has attracted a large amount of foreign direct investment (FDI) since 1990, making it one  of the most successful CEE countries in terms of FDI per capita. 

The country’s investment grade ratings from international credit-rating agencies and its early membership in the European Union and OECD testify to its positive economic fundamentals. The country is a member of NATO and is fully integrated into other international organisations such as the WTO, IMF and EBRD.

Investment risk rating

Country Moody's Analytics Standard & Poor's Fitch Ratings
Czech Republic Aa3 AA- AA-
Slovak Republic A2 A+ A
Poland A2 A- A-
Bulgaria Baa1 BBB BBB
Hungary Baa3 BBB BBB
Romania Baa3 BBB- BBB-
Source: Czech National Bank, 2022

Improving Competitiveness

The Czech Republic (33nd place) is at the top of the CEE countries in the competitiveness of the world economies.

The IMD World Competitiveness Ranking

 
Rank 2019 Country/Economy Ranking Change
1 Switzerland +2
2 Sweden +4
3 Denmark -1
... ... ...
33 Czech Republic -1
38 Latvia +3
42 Hungary +5
47 Poland -8
48 Romania +3
50 Slovak Republic +7
Source: IMD, 2022
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