Czech Republik: Are arms, not cars, the new economic engine? DW 05/13/2025
Briefly

The Czech Republic has achieved the highest per capita car production globally, with over 1.4 million vehicles made in 2024. Despite this success, a significant drop of 7.1% in car production occurred in early 2025 due to decreased demand in the West, stemming from issues in the European automotive sector and tariffs. Meanwhile, the arms industry is thriving, with around 90% of production exported. While some view this sector as a potential economic engine, there are concerns about arms outpacing automotive production in importance.
"The defense industry can become a new engine of the Czech and European economy," Danuse Nerudova stated, emphasizing its potential to utilize capacities freed by the automotive sector.
"Czech arms factories are experiencing golden times, that's true," said economist Petr Zahradnik, yet he cautioned against viewing arms production as a replacement for the automotive sector.
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