The EU’s brainy number crunchers at Eurostat have shown the Czech Republic, once again, to be the right horse to put your money on. As a thriving, modern industrial economy located in the heart of Europe, the Czech Republic leads the pack on the Old Continent with an astoundingly high level of gross fixed capital formation, leaving its bloated, wheezing behemoth neighbor to the north, geriatric Germany, searching for its dentures in the factory floor dust.
In 2015, the Czech Republic enjoyed an impressive 26.3% share of its GDP in fixed capital formation (investments in assets such as land, buildings, machines and equipment)—ranking first among all EU and Eurozone countries. Germany, on the other hand, mustered only 20.1%, which is average for the Eurozone (or, worse, only 19.9% on Eurostat’s other website comparing EU countries’ performances, shown in the image below).
But, the story doesn’t stop there. The Czech Republic buries Germany in many other economic indicators as well.
Real GDP in the Czech Republic grew 4.5%, while Germany puttered along at a boring 1.7%. Gross fixed capital formation, as stated earlier, shines bright for the Czech Republic, as opposed to dull Germany, demonstrating how the Czech Republic has attracted more solid investment in real assets that make economies prosper and returns grow.
Czechia is worth checking out, and smart investors know it.
Investors know a good thing when they see it. That’s why the current account balance (often misinterpreted, overplaying positive numbers as something always really dandy) is a healthy -2.1 million EUR for the Czech Republic. As a country’s current account can explain the difference between the country’s total value of exports of goods and services versus the total value of import of goods and services, it can also define the difference between the country’s total value of savings versus investment (public and private). Therefore, a negative current account balance can reflect a low level of national savings relative to investment—or a high rate of investment, well above savings. With its solid growth in real GDP and its hefty, first-place position within the EU for the share of its GDP in fixed capital formation, the Czech Republic is spending heavily on real investments that spur commercial activity, manufacturing and production. Take that and compare it to penny-pinching Germany, with its bloated piggy bank holding 72813 million EUR in a current account surplus, waiting for something worthwhile to buy or invest in within its own boarders.
Taking the bull by the horns, investors have poured streams of money into Czech Republic. Direct investment flows—inflows—into the Czech Republic is a healthy 4.1% of its GDP, compared to a paltry 0.4% for Germany; direct investment stocks—inward—into the Czech Republic is 67.6% of its GDP, while Germany attracts less than half of that, only 28.5% of its GDP; and, foreign direct investment intensity for the Czech Republic is 2.5% of its GDP, for Germany it’s only 1.4% of its GDP. In all three categories describing a country’s investment appeal, the Czech Republic is welcomed by the smart money with open arms. Germany’s barely tolerated.
The Czech Republic Is Europe’s Hub for Modern Manufacturing; Germany’s a Has-been.
Flexing its economic muscles on the world stage, the Czech Republic attracts the attention not only of savvy investors, but also customers world-wide seeking high-quality, value-added industrial output, the top-notch capital goods that drive modern manufacturing, such as FERMAT’s powerful and precise horizontal boring mills.
FERMAT exemplifies the best in modern European manufacturing. It designs and produces CNC machine tools of exquisite precision, massive and powerful, for markets around the world. FERMAT’s line of table-type and floor-type horizontal boring mills, milling heads, CNC rotary tables and accessories, as well as cylindrical grinders, are chosen for their excellent performance and cost-effective benefits.
FERMAT’s most popular table-type horizontal boring mill WFT 13 CNC delivers superb machining of large or heavy workpieces. With its robust construction, powerful headstock, spindle diameter of 130 mm, 730 mm spindle extension, CNC rotary table with load bearing capacity of 20 metric tons, and optional ram stroke of 700 mm (WFT 13 R CNC), this marvelously-built machine tool maximizes manufacturing potential and boosts production. FERMAT customers don’t need to choose between power or precision, fine detailed milling or hardcore machining. With FERMAT’s WFT 13 CNC, machining a gigantic steering knuckle or milling molds and other metalwork are all in a day’s work.
Please visit, http://www.fermatmachinery.com/products, for information on the different FERMAT machine tools and accessories that can improve your manufacturing business. Also, try to Build Your Own machine using our on-line configurator found on our homepage, http://www.fermatmachinery.com/. Should you have any enquiries, please send us an e-mail: email@example.com, or for the U.S. market, e-mail Lucas Precision, a FERMAT Group company: firstname.lastname@example.org, or call toll-free: 1-800-336-1262, or telephone in the U.S.: (216) 451-5588, or send us a fax (216) 451-5174.