Foreign investment in the Czech Republic plummeted in 2018 year-over-year.
CzechInvest closed 82 deals valued over CZK 36 billion in 2018. A forty percent drop from the 2017 when investments exceeded CZK 60 billion.
CzechInvest’s biggest projects in 2018 came from the plastics, metalworking and automotive industries.
Czech Labor Shortage
The Czech labor market is suffering a severe labor shortage. Many workers have migrated to Western Europe seeking higher-paying jobs. Meanwhile, wages are increasing due to the limited supply of workers available. Which, in turn, is driving investors to do business in other Central and Eastern European countries.
CzechInvest CEO Patrik Reichl is confident the situation will improve. Mr. Reichl plans to focus on “smart investments” from high-tech industries going forward. Especially software development, aviation, and self-driving cars.
The agency has helped create over 80,000 jobs and secured over CZK 800 billion since its creation.