The U.S. Department of State Investment Climate Statements provide information on the business climates of more than 170 economies and are prepared by economic officers stationed in embassies and posts around the world. They analyze a variety of economies that are or could be markets for U.S. businesses.

Topics include Openness to Investment, Legal and Regulatory systems, Dispute Resolution, Intellectual Property Rights, Transparency, Performance Requirements, State-Owned Enterprises, Responsible Business Conduct, and Corruption.

These statements highlight persistent barriers to further U.S. investment. Addressing these barriers would expand high-quality, private sector-led investment in infrastructure, further women’s economic empowerment, and facilitate a healthy business environment for the digital economy. To access the ICS, visit the U.S. Department of State Investment Climate Statement website.

Executive Summary  

The Czech Republic has enjoyed one of the strongest economies in Europe, with the lowest rate of unemployment in the EU. The services sector accounts for more than 60 percent of the economy and industry for 37 percent. The auto industry by itself accounts for roughly 10 percent of GDP, and the digital economy makes up another 10 percent. However, the Czech Republic is currently experiencing one of the highest inflation rates in Europe, surging to 18 percent in September 2022. While inflation is increasing across all categories, energy prices have increased by 40-50 percent for many citizens and businesses. Gas and oil only make up a small portion of the Czech Republic’s electricity needs; however, it is used for heating, and most of the country’s gas and oil comes from Russia. The Czech Republic is looking to expand nuclear power production, deploy more renewable energy, and improve energy efficiency to reduce greenhouse gas emissions by at least 55 percent by 2030. The country pans to eliminate the use of coal by 2033 as part of the country’s effort to meet its greenhouse gas reduction pledge.  

Successive Czech governments have welcomed U.S. investment, and the United States has been one of the Czech Republic’s top non-EU investors, with a bilateral investment treaty in force since 1992. The Czech Republic’s strong engineering and scientific talent has spurred several U.S. companies to set up R&D centers in the Czech Republic. Many Czech companies have become global leaders in their respective industries, making significant investments or acquisitions in the United States.

The current Fiala government views its EU presidency (until December 2022) as an opportunity to improve the country’s standing in Brussels and advance national priorities as it strives to take on a more robust leadership role. The Czechs commemorated 18 years in the EU in May 2022. The government’s presidency priorities include: the postwar reconstruction of Ukraine and support for its EU candidacy; energy security; strengthening European defense capabilities and cybersecurity; strategic resilience of the European economy; and resilience of democratic institutions. Bolstering the transatlantic relationship has also been a focus of the Czech presidency, and the Czechs are enthusiastic supporters of the U.S.-EU Trade and Technology Council.