Economic overview

Overview of the economy of the Zlín Region

In the past the Zlín Region was significantly affected by structural changes, as indicated by the region’s decline in GDP in the late 1990’s, the fourth largest decline in the Czech Republic. This resulted from the decline of the footwear production industry (Svit, s.p.) and the aircraft production industry (Let Kunovice, s.p.), industries that had under the former regime achieved international recognition. In contrast, in 2005, the Zlín Region registered inflation-adjusted GDP growth of 8.3 % due to growth in industrial production in all areas. The key players responsible for this growth were companies in the manufacturing industry (39.0 %), business services (11.7 %) and commerce (11.6 %). The building & construction and transportation industries had a significant effect on GDP. However, the rubber and plastics production sector (Barum Otrokovice) had the greatest effect of all.

The 2006 inflation-adjusted GDP growth of 7.1 % in the Zlín Region was most affected by the food processing industry, chemical industry, building & construction, insurance, healthcare and foremost by the rubber and plastics production industry. Also in 2007, the Zlín Region achieved an above average rate of growth with an  inflation-adjusted GDP of 6.6 %. The onset of the economic crisis also affected the Zlín Region, resulting in the rapid decline of real GDP by up to 7.5 % in 2009, whereas in the previous five years the Zlín Region was amongst the regions reporting the largest increases in GDP in the Czech Republic (in 2005, 8.3 %). The export orientated manufacturing sector representing the engine of the region’s economic growth (automotive industry, metal production and the rubber industry) was the cause of a steep decline.

Gross value added (GVA)

In 2009, the gross value added in the Zlín Region amounted to CZK 152,472 million. Individual industries had an effect on the GVA in varying degrees at various time periods. A time comparison of the period 2000-2005 shows that the GVA had decreased in agriculture, forestry and fishing, accommodation and catering. By contrast the building & construction, education, health care and social services and veterinary services reported significant levels of growth. This development trend is evident both in the Zlín Region and nationally. Currently, manufacturing and services provide the greatest contribution to the GVA.