1 / 22

Conference New Address for Your Business

Strategická průmyslová zóna Holešov. Conference New Address for Your Business. Petr Zahradník Head of EU Office Česká spořitelna. Holešov Industrial Zone Analysing the impacts in a broader economic and regional context. Petr Zahradník and Jan Jedlička April 2010.

bess
Download Presentation

Conference New Address for Your Business

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Strategická průmyslová zóna Holešov Conference New Address for Your Business Petr ZahradníkHead of EU Office Česká spořitelna

  2. Holešov Industrial ZoneAnalysing the impacts in a broadereconomic and regional context Petr Zahradník and Jan Jedlička April 2010

  3. Parameters applicablein the long term • One of the key factors in the unprecedented economic prosperity of this decade: a targeted motivating investment incentive policy attracting hundreds of leading global and European corporations to the Czech Republic; • Despite significant qualitative changes (from large-scale processing industry to more sophisticated services, a change in policy approaches to incentives, major impact of the crisis) targeted investment incentives remain legitimate and justified; • Without rational and sound investment no sound economic development creating jobs and promoting competitiveness would be possible in the long term

  4. Long-term effects • Significant enhancement of growth performance and achievement of long-term economic prosperity; • Improving the competitive position of the country and its regions; • Crucial creation of new, mainly qualified, jobs; • Positive change in the balance of trade, improving its commodity and territorial structure in terms of more ambition and more emphasis on quality; • Key contribution to ongoing structural changes

  5. Impact of the economic crisis • Global and European economies, including the Czech Republic and the Zlín Region, have seen a dramatic decrease in real economic performance affecting all its components, including investment (in the EU -18% y-o-y, in the Czech Republic more than 8% in 2009); • Devastating effect on labour markets, as well as the state of and outlook for public finances, possibly holding back the recovery process; • Czech Republic: capacity issues; before the crisis – enormous rate of investment; is all the investment usable?; encouraging factor: further expansion of exports and incentives for mainly Asian investors to operate on the EU‘s single internal market

  6. Impact of the economic crisisEU – Czech Republic – Zlín Region Czech GDP in 2009 EU, CR and Zlín Region GDP in 2009

  7. Key parameters of the ZlínRegion’s economic development • Crucial structural changes in the economy during the past 20 years (factual extinction of two key processing industries: shoemaking and aviation); • GDP per capita (10th place out of 14 regions of the Czech Republic); • Very dynamic growth since 2000 → a typical convergence region, capable of sustaining long-term, above-average economic growth; • Relatively favourable long-term unemployment data in both national and European context, but… (10.8% at the end of 2009 and 11.4% at the end of Q1 2010 !!!); in times of prosperity, long-term average below 8%

  8. Key parameters of the ZlínRegion’s economic development • Changing demographic conditions (peak of prosperity → population growth, both natural and through migration, now population in decline); visible ageing process; region with high social cohesion • Persisting investment underdevelopment (even in times of prosperity, investment per capita was only at 3/5 of the Czech Republic’s average) → strong investment need, no excess capacities created; • Strong business base, especially in the SME sector; long tradition of expansive and innovative enterprise – Baťa – one of the best known multinationals, founded in the Czech Republic; • Motto and objective: find a new Baťa !!!

  9. Key parameters of the ZlínRegion’s economic development Czech GDP in 2009

  10. Priority areas for future economic development of the Zlín Region • Competitive economy – promoting the application of outcomes from R&D and innovation projects; – strengthening the role of the services sector in the region’s economy; – strengthening the role of SME’s; – maintaining competitiveness in dominant industries: chemical, rubber and plastics industries, metallurgy, electrical engineering, food industry →main task of the Holešov Industrial Zone Strategy for 2020 and Development Programme for 2012:

  11. Priority areas for future economic development of the Zlín Region • Successful society • increasing the competitiveness of the workforce in a knowledge-based economy (lifelong learning, languages); • reducing unemployment rate to achieve a natural rate; • enhancing the efficiency of health and social services • Efficient infrastructure and rural development – improving environmental parameters; – making rural life more attractive through diversifying activities in rural areas; – increasing the region’s importance as an inter-regional transport destination and developing the public transport system • Attractive region – attracting more visitors and improving the use of tourism capacities; – promoting awareness about the region as a tourist destination; – preserving the region’s cultural heritage

  12. Assessing the positionof Holešovin terms of development needs • Development Programme for 2012: a test to determine how individual subregions (13) of the Zlín Region fulfil their development priorities; • Based on objective analysis, excellent result for the Holešov subregion : second place overall; relative ranking almost 10% above regional average; • Dominant position mainly due to excellent transport infrastructure, links to public transport networks, competitive economic parameters (in terms of business environment and relatively favourable labour market situation), and demographic conditions

  13. Assessing the positionof Holešovin terms of development needs Holešov’sposition in the region in terms ofdevelopment needs *(9.8% above regional average), source: Zlín Region Development Programme for 2009-2012

  14. Macroeconomic model of impacts (1) Basic assumptions of the macroeconomic model • scheduled start of productionand investment (of total capacity): • period observed: 2010 – 2015 • impacts observed: on the CR as a whole + on the Zlín Region • estimated macroeconomic parameters(until 2012 under the Convergence Programme of the CR): • distribution of investments: 1/3 construction, 2/3 technology

  15. Macroeconomic model of impacts (2) Basic assumptions of the macroeconomic model • jobs distribution: • distribution of investors by sector: according to the sectors’ role in the economy (performance) + 3 times more chemical, plastics and aviation industry • usable area for investors = 280 ha • METHODOLOGY OUTLINE: • zone area → investment + • jobs → performance + • GVA (GDP) + profit • + export/import performance CI data ratio indicators

  16. Macroeconomic model of impacts (3) Impact on Czech GDP Czech GDP increase with the Holešov Zone • first effects in 2010 (construction + production), main effects from 2011-12 • whole 2010-2015 period - GDP increase by CZK 151.9 billion with a  potential • in 2015 GDP 0.88% higher and growth 0.05 pp faster Y-o-y real GDP growth in the Czech Republic without Holešov with Holešov

  17. Macroeconomic model of impacts (4) Impact on the Zlín Region’s GDP Zlín Region GDP increase with Holešov Zone • first effects in 2010 (construction + production), main effects from 2011-12 • over the 2010-2015 period - GDP increase by CZK 75.4 billion with a  potential • in 2015 GDP 10.13% higher (!) and growth 1.01 pp faster Y-o-y real GDP growth in the Zlín Region without Holešov with Holešov

  18. Macroeconomic model of impacts (5) Impact on employment in the CR • first effects in 2010 (construction + production), main effects from 2011-2012 • in target year 201541 713 new jobs with a  potential • in 2015 unemployment rate 0.73 pp lower, at 5.27% Unemployment rate in the Czech Republic new jobs (right axis) unemployment rate without Holešov (left axis) unemployment rate with Holešov (left axis)

  19. Macroeconomic model of impacts (6) Impact on employment in the Zlín Region • first effects in 2010 (construction + production), main effects from 2011-2012 • in target year 201515 499 new jobs with a  potential • in 2015 unemployment rate6.36 pp lower, at 1.24 % Unemployment rate in the Zlín Region new jobs (right axis) unemployment rate without Holešov (left axis) unemployment rate with Holešov (left axis)

  20. Macroeconomic model of impacts (7) Impact on Czech public finances • over the 2010-2015 period – improvement of PF by CZK 55.4 billion with a  potential • in 2015 State budget deficit CZK 15.5 billion lower (0.34 pp GDP) • greatest effecthealth insurance and social security,  unemployment benefits; partly also  individual income tax, corporate income tax,  VAT Czech public finances deficit / GDP ratio public finances change (right axis) without Holešov (left axis) with Holešov (left axis)

  21. Macroeconomic model of impacts (8) Other relevant macroeconomic effects • Public finances in the Zlín Region • increased revenue – shared taxes (VAT, individual and corporate tax) • over the period of 2010-2015 – revenue growth by CZK 69.7 million, with  potential • Balance of trade of the CR • increasing surplus of BOT • over the period of 2010-2015 – surplus increase by CZK 26.3 billion with a  potential • GDP structure change in CR and ZR • stronger industry vs. other sectors Revenue increase in the Zlín Region – shared taxes with Holešov Balance of foreign trade in CR (in billions of CZK) balance of trade change (right axis) without Holešov (left axis) with Holešov (left axis)

  22. Conclusion Thank you for you attention Petr Zahradník pzahradnik@email.cz Jan Jedlička janjedli@seznam.cz

More Related