Czech exporters have before them probably one of the most difficult periods in modern history
After overcoming the limitations due to pandemic lockdowns, they face a shortage of raw materials or key components. Production is limited by large industrial companies in the Czech Republic, but also in Europe. This has a direct impact on the entire supply chain. The values of the indicator of new orders for May are growing sympathetically and it can be seen that new orders from abroad predominate. It is also clear that the share of exports to the euro area dominates all exports.
Czech exports to neighboring Germany grew even more dynamically, where 23.9% more goods were exported in the first four months of this year than last year. This testifies to the fact that exporters manage to resume exports to neighboring markets the fastest, and Germany, where one third of Czech exports go again this year, is the most important and stable market for Czech companies. The demand for German goods is also growing, in April German exports reached the volume of exports before the pandemic. This is good news for Czech exporters as well, because a large part of Czech goods travel to Germany via Germany to third countries.
During the coronavirus crisis, many Czech companies accumulated capital and enter the German market as investors. Many more Czech companies want to establish their own branches in Germany.
Comments from Adam Jareš, director of the CzechTrade regional center in Germany