European Markets Summary

You might not think much of a stock market with a trade value of less than $250 million. Yet, the Czech Republic is so positioned on the globe, and Prague has emerged as such a leading growth center, that the city's stock market is clearly a star on the ascendant and worth watching.

Though the Czech Republic is land locked like some of its neighbors, and not especially endowed with natural resources, the talents and resilience of its people are instrumental in working toward prosperity. Years of repression during the Soviet era have not destroyed the spirit of enterprise that is evident among citizens, and separation from Slovakia has brought much needed peace and political stability. The GDP grows at an attractive 6% and exports to EU countries buttress expanding domestic demand.

Foreign investors have key roles in the development of the Prague Stock Market for they create new jobs rapidly. The median income, which is a shade under $20 thousand a year, and the unemployment, which is a little over 9%, will both soon come close to U.S. standards. SkyEurope, one of the premier low-cost carriers for this part of the world, and with a substantial presence in Prague, has ordered a substantial number of new aircraft from Boeing, in a telling sign of the good times ahead for Central Europe.

Clearly, the Prague stock market is worth watching and participating in, because it is evident that the economy of the Czech Republic is set for a rapid and sustained acceleration. International standards of business are likely to see companies based in this country make increasing footprints around the globe, apart from strong performances on the domestic front.