Some companies in the defence industry have seen their business multiply because of the war in Ukraine, but Czech weapons, ammunition and other equipment are exported all over the world.
Great impulse for the industry has been the increase in spending on defence in European countries. Czech arms manufacturers are reporting record-breaking economic results, with export volumes growing substantially.
According to statistics from the Czech Ministry of Industry and Trade, arms exports grew to USD 2.6 billion in 2023. A year earlier it was about USD 1.3 billion and in 2021 about USD 0.7 billion. One of the fastest growing companies in the last few years has been Czechoslovak Group with 90 percent of their income attributed to export, with more than half of it into Europe (excluding Ukraine). Similar success is having Colt CZ Group, 40 percent of their sales are in the US.
Another key development in recent years has been the shifting approach of commercial banks towards clients in the defence sector. Financing and credit loans, especially for larger defence clients, have become increasingly attractive to most banks, although strict control measures remain in place.