Published on: March 30, 2025 / update from: March 30, 2025 - Author: Konrad Wolfenstein
Czech Republic: Economic opportunities for Czech companies in Germany and Europe - an analysis - Image: Xpert.digital
Industrial history meets modern economic strength in the Czech Republic
Czech Republic: strategic location and strong economy combined
The Czech Republic, a country with a traditional industrial history and a dynamic entrepreneurship, presents itself as a modern, export -oriented economy. Their strengths lie in a well -trained and motivated workforce, a solid industrial basis and a strategically favorable location in the heart of Europe.
Czech Republic economic landscape: a snapshot
The Czech economy has undergone remarkable development in recent decades. From the transition from a centrally planned economy to an open market economy according to the fall of the Iron Curtain, the country has carried out an impressive transformation. Today the Czech Republic is an integral part of the European Union and benefits from the internal market and the associated economic advantages.
The gross domestic product (GDP), which measures the overall performance of an economy, was around $ 343 billion in 2023. This corresponds to a GDP of around $ 31,626 per capita, which is well above the global average. This value reflects a comparatively high standard of living and a solid economic basis.
In the past ten years, the Czech economy has had an average real GDP growth of around 2.2 %. This constant growth testifies to the robustness and resilience of the Czech economy, especially in comparison to other countries in Central and Eastern Europe.
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Export dependent and resilient: New perspectives for the Czech Republic economy
Like every economy, the Czech Republic faces challenges. In the years 2022 and 2023, the country had a high inflation that was temporarily over 15 %. This led to a decline in real wages and dampened the expenditure of consumption, which had a negative impact on economic growth.
Another factor that influences the Czech economy is its dependence on export. As a small, open country, the Czech Republic is heavily dependent on demand from abroad, especially from Germany and other EU countries. This makes the Czech economy susceptible to economic fluctuations in its most important trading partners.
Despite these challenges, there are also many positive signals. Current data indicates a recovery of the Czech economy, with a forecast growth of around 1.0 % in 2024 and an acceleration to 2.4 % in 2025 and 2.7 % in 2026. This growth is expected to be borne by private consumption and investments.
Inflation also seems to calm down. Forecasts assume a significant decline to around 2.7 % in 2024, 2.4 % in 2025 and 2.0 % in 2026. This would increase real wages and boost consumption.
Trust in the Czech economy has also increased. In March 2025, the business climate has reached the highest level in almost three years, which indicates that companies are more optimistic about their future profitability and growth.
The strengths of the Czech economy: key industries in focus
The Czech economy is diverse and is based on various key industries. The most important sectors include:
Automotive industry
The automotive industry is the backbone of the Czech economy. The country is an important production location for various automobile manufacturers and suppliers. The Czech Republic is one of the world's leading countries in the per capita production of passenger cars.
mechanical engineering
Mechanical engineering is another important sector that has a long tradition in the Czech Republic. The country is an important exporter of machines and systems.
Electronics and electrical engineering
The electronics and electrical engineering industry also has a long tradition in the Czech Republic. The country is an important manufacturer of electronic components, devices and systems.
Information technology (IT)
The IT sector is a growing area of the Czech economy. The country has a well-trained pool of IT specialists and is an attractive location for software development and other IT services.
Biotechnology and biosciences
The biotechnology and bioscience sector is another growing area of the Czech economy. The country has achieved remarkable success in the development of human and veterinary pharmaceuticals, diagnostics and fermentation technologies.
Creative industries
The creative industries that include areas such as design, fashion, gaming and film is a dynamic and growing sector of the Czech economy.
Expansion opportunities for Czech companies: Germany in sight
In view of the economic strengths of the Czech Republic and the favorable framework, there are numerous opportunities for Czech companies to expand to Germany and other European markets. Germany, as the largest economy in Europe and centrally located, offers particularly attractive perspectives.
Why Germany? The strategic advantages at a glance
Germany is an ideal starting point for Czech companies that want to expand in Europe for several reasons:
Largest economy in Europe
Germany has the largest economy in Europe and the fourth largest in the world. This offers Czech companies a huge sales market with high purchasing power.
Central location
Germany lies in the heart of Europe and borders nine countries. This makes it an ideal location for the distribution of products and services across Europe.
Excellent infrastructure
Germany has an excellent infrastructure, including a dense network of highways, railways, airports and ports. This facilitates the transport of goods and services.
Qualified workers
Germany has a large pool of qualified and well -trained workers. This is particularly important for companies that work in technology -intensive sectors.
Focus on innovation
Germany is a strong innovation country that invests a lot in research and development. This creates a favorable environment for companies that develop innovative products and services.
Stable political and economic environment
Germany offers a stable political and economic environment that is important for long -term investments.
The role of a German partner: a key to success
Although Germany offers many advantages, market entry is not always easy. The German market is competitive and places specific requirements for products, services and marketing strategies.
It is therefore advisable for Czech companies to work with a German partner who has sound knowledge of the local market. Such a partner can offer valuable support in the areas of marketing, PR and Business Development.
A German partner can:
Understand the German market and consumer behavior
A local partner knows the preferences and needs of German consumers and can help adapt products and services accordingly.
Master the German business culture and communication
The German business culture is formal and direct. A local partner can help avoid misunderstandings and build trust.
Develop and implement localized marketing and PR strategies
A local partner can develop marketing and PR campaigns that are tailored to the German target group.
Build business networks and partnerships
A local partner has a network of contacts to potential customers, suppliers and partners.
Make business development and sales easier
A local partner can help with lead generation, sales promotion and the establishment of customer relationships.
Consider legal and regulatory requirements
A local partner knows the German laws and regulations and can help to avoid compliance problems.
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Success stories: Czech companies on the way to Germany
There are already many Czech companies that have successfully expanded to Germany and other European markets. These success stories serve as inspiration and show that it is possible to be successful abroad.
Some examples are:
Rohlik Group (Knuspr.de in Germany)
This Czech online food delivery service has successfully expanded to Germany under the Knuspr.de brand.
Umbrella Mobility
This large Czech transport company has successfully entered city and on-site traffic in Hamburg.
Linet
This Czech manufacturer of hospital beds actively pursues acquisitions in Germany.
Raylyst and Woltair
These Czech companies were recognized by the Financial Times as some of the most growth in Europe.
Kiwi.com and productboard
These Czech “unicorns” have considerable success on the European market.
Funding programs: Support for Czech companies
In order to support Czech companies in their expansion to Germany and to other European markets, there are a number of state and private support programs.
On the Czech side, Czechtrade and Czechinvest offer support in the areas of export promotion and recruiting foreign investments. The Czech export bank and EGAP offer financing and insurance for exporters.
On the German side, Germany Trade & Invest (GTAI) offers a wide range of advisory and support services for foreign companies who want to invest in Germany. There are also various incentive programs and public financing instruments.
At European level, there are programs such as Interreg that promote cross -border cooperation.
Strategic recommendations for Czech companies
In order to expand successfully to Germany and other European markets, Czech companies should take the following strategic recommendations into account:
Give a detailed market research through
Analyze the specific segments of the German and European market that match your offers.
Develop a targeted market entry strategy for Germany
Weigh different forms of entry, such as direct investments, founding a branch or entering partnerships.
Prioritize the search for a strong German partner
Find actively for working with a respected German company that specializes in marketing, PR and Business Development.
Adjust products and marketing to the German market
Be ready to adapt your products, services and marketing materials to the specific preferences of German customers.
Explore and use the funding programs that are actively available
Get in touch with Czech agencies such as Czechtrade and Czechinvest and explore the investment incentives and support offers from the German government and the European Union.
Consider a gradual expansion approach
Start with a smaller presence to gain experience and create a basis for a broader expansion.
Concentrate on building long -term relationships
Emphasize the establishment of trust and promotion of sustainable partnerships with German customers and business partners.
Monitor and adapt continuously
Rate your performance on the German market regularly and adjust your strategies if necessary.
Market entry in Germany: Strategies for Czech companies
The Czech Republic offers a solid basis for companies that want to expand internationally. Germany, as the largest economy in Europe, offers attractive opportunities for Czech companies, especially in the areas of automotive delivery, electronics, IT, biotechnology and creative industries.
With careful planning, a targeted market entry strategy and working with an experienced German partner, Czech companies can successfully expand to Germany and benefit from the advantages of the European internal market.
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