America's investment base in the Czech Republic is small but has risen by one-third over the past ten years to $5.4 billion in 2017. This is down from a peak of $6.4 billion in 2013, but still is significantly larger than investment by Czech Republic firms in the U.S., says the 2019 edition of the Transatlantic Economy report published by the AmCham EU and U.S. Chamber of Commerce in cooperation with The Johns Hopkins University, School of Advanced International Studies.
The employment of foreigners on the Czech market is a hotly debated topic these days. According to an analysis by the Prague Institute of Planning and Development from October last year, on average, at least every tenth economically active person in the Czech Republic is a foreigner; in Prague, the ratio is in fact one in five.
The transport sector has been on the receiving end of environmental wrath for quite some time now, having been responsible for over 25% of CO2 emissions in the EU alone. To tackle this, the sector is becoming more and more electric, Grayling's Tereza Haklová writes.
Amcham hosted another roundtable with Prague City Hall representatives on transportation and affordable housing in Prague. Today we met the ´mayor´s men´, representatives of Pirate party Viktor Mahrik and Vít Šimral.
Recommendations of the Czech National Bank
The continuing increase in the number of bank loans provided in the Czech Republic has drawn the attention of the Czech National Bank (CNB), the regulatory body obliged to maintain and support financial stability. The CNB has therefore published a number of recommended industry guidelines regarding mortgage lending conditions.
In particular, lending limits have been suggested relating to loan-to-value ratios (LTV); debt-to-income ratios (DTI); and debt service-to-income ratios (DSTI). In the opinion of the CNB, these limits need to be observed in order to minimise risks connected with the growing economic market.
In 2015, CNB issued its first recommendation on managing the risks associated with providing retail secured residential property loans. This was aimed at preventing risks associated with the residential property market by setting LTV limits. In 2016 and 2017, the CNB continued to tighten LTV limits; DTI and DSTI levels were also introduced.
Strategic Directions for Czech Economic Policy
- 1) The home of value-added manufacturing
- 2) Prague-Brno-Ostrava Creative Triangle
- 3) Health Care as an export industry
- 4) Government as a competitive advantage
In Policy Pipeline policy developments in the Czech Republic and abroad are monitored to bring better understanding of current topics and trends.