Italian firms find investing in the Czech Republic attractive

Italy is not one of the major countries when it comes to foreign direct investment (FDI) inflow to the Czech Republic. Yet, the last three years saw top financial names such as banking group UniCredit or insurer Assicurazioni Generali taking more steps in the Czech financial market, attracted by profitability above the Western European average. Backing top names, a large number of small firms active in sectors such as real estate, food or fashion carry Italian labels and try to adapt to the Czech investment climate. While these areas offer some room for development, experts say that a large inflow of Italian investments cannot be expected because Italian firms are cost-sensitive and the pressure to reduce costs stimulates them to target Eastern European and Asian countries such as China.