According to the Czech Statistical Office (CZSO), industrial production rose by an impressive 9.0% year-on-year in April 2024. Manufacturing, leading the charge, witnessed an even more remarkable growth of 11.2%. These figures paint a promising picture, especially considering the lackluster performance of the Czech economy in recent years. Furthermore, this growth is not limited to a single sector, but rather indicates a broad-based resurgence across several key industries. Strong performances in the production of motor vehicles, chemicals, and machinery are key contributors. This diversification indicates a robust and adaptable Czech manufacturing base.

Let’s shift our focus on the role of export orders as a catalyst for this growth. While domestic demand remains subdued, a rise in export orders has significantly bolstered the industry. Data suggests a 5.3% year-on-year increase in new orders from abroad, particularly evident in the automotive sector. This strong international demand signifies the continued global competitiveness of Czech-made products. The automotive industry, for instance, has benefited from its established supply chains and strong partnerships with major international car manufacturers. Similarly, the chemical industry's focus on high-quality products and adherence to international standards has fostered trust and demand from international buyers. The increase in export orders has also had a positive impact on job creation. Large and long-term orders for transport equipment and machinery have led to increased production activities and a rise in employment opportunities within these sectors. This not only benefits the Czech workforce but also contributes to the overall stability and prosperity of the country's economy.

Be that as it may, we need to acknowledge the remaining challenges while also emphasizing on the overall positive outlook. Despite the positive trends, concerns regarding workforce shortages and rising inflation persist. However, the industry's current performance is a testament to its resilience and adaptability. With a focus on innovation, diversification, and attracting skilled workers, the Czech Republic's industrial sector is well-positioned for sustained growth in the years to come. This success story not only strengthens the Czech economy but also presents Southern African businesses with exciting opportunities for mutually beneficial partnerships and trade collaborations.

Author: Sean Hlomane, Industry and Trade Specialist