Wednesday, 16 April 2014

Czech exports less dependent on EU

15 March 2013

Prague, March 14 (CTK) - Dependence of Czech exports on EU countries fell moderately last year when 80.8 percent of the exports went to EU countries, compared with 83 percent in 2011, according to Industry and Trade Ministry data.

Total Czech exports reached Kc3,000bn last year.

"Our export is vulnerable for being so tied to Europe. We have managed to separate ourselves from Europe a bit and find new territories," said minister Martin Kuba.

The share of exports to twelve priority countries defined in the new export strategy increased from 14.8 percent to 16.8 percent last year. In total, goods for Kc340bn were exported to these priority countries like Brazil, China and India.

However, most of the domestic exports still target EU countries, in particular Germany. Many EU countries grapple with economic fall which lowers demand. Exporters have thus been looking for new markets in the last few years.

Exporters are a bit sceptical about last year's decrease in the share of exports to EU countries.

"It is a minor swing and only time will tell whether it will last or there will be return to earlier figures. There are no significant reasons for a permanent trend of cutting exports to the EU," Association of Exporters chairman Jiri Grund told CTK.

With respect to the structure of last year's exports, the share of components for cars and their exports is still very important.

"The composition of our exports fluctuates but the structure is basically unchanged. This is given by the structure of our industry and links with important markets," Grund added.

The ministry plans fifteen foreign trips within support to exports this year. Apart from India and Bangladesh, where a delegation from the ministry and reps of domestic companies are these days, visits are planned, for example, to Algeria, Israel, Morocco, Russia and Sub-Saharan Africa.

Share of Czech exports to EU countries (pct):

2005 2006 2007 2008 2009 2010 2011 2012
share 85.5 85.7 85.3 85.2 84.7 84.0 83.0 80.8

Source: Industry and Trade Ministry

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