Legal Market Overview
With the lowest unemployment rate in Europe, the Czech Republic enjoys a thriving economy which is expected to continue to grow at a rate of 2.5%, according to estimates by the IMF. However, some anxieties are looming about a possible decline due to a labour shortage and a slowdown in the Czech export market, as well as the potential effects of Brexit.
Chinese investment into the Czech Republic has receded somewhat for now, but interest from the Asia Pacific region remains high, and firms have been particularly active in advising Japanese investors, especially in the automotive sector.
2019 proved to be another stellar year for the real estate market in the Czech Republic, which saw €3.7bn-worth of transactions. Investment in the area attracted new entrants from South East Asia, notably Korean investors, via M&A transactions and major cross-border financing deals.
In the financial sector, fintech is still at a level of infancy but is expected to grow in the next five years.
International heavyweights like Allen & Overy and White & Case (Europe) LLP continue to dominate the Czech market, with regional firms such as Kinstellar and Glatzová & Co., s.r.o. coming a close second in securing top-end mandates. Following the closure of the firm’s Czech office, former Weil, Gotshal & Manges (London) LLP partners in Prague have rebranded as Skils s.r.o. advokátní kancelář and continue to operate as normal.