- December 15, 2008
Czech Auto Industry Getting Depressed
Detroit auto crisis now has began to affect global auto industry, as week demands of auto-parts are being observed in many European countries including Czech Republic where auto industry serves as the backbone of the economy.
According to the figures presented by the Czech government, there was a 7.6 percent drop in production during October 08, while it saw 8.9% expansion in September.
Similarly, there was a 15% drop in the auto exports of the country and it became the cause of deficit in the external trade balance of the country.
In October, the current-account deficit of the country increased to $1.14b that was $1.05b in September and it was mainly due to drop in vehicle exports.
In Czech Republic, the auto industry began to flourish soon after the decline of communist rule in 1989 and after that many Western automakers revitalized country’s old auto industry with significant investments. Since that time, it began to serve as the backbone in the country’s economy.