The Czech Republic is the ninth most advanced economy in the EU, and is also the best compared to other countries in the former Eastern bloc. Sweden ranks first, followed by Germany and Denmark. This follows from the new Prosperity Index focused on the economy, compiled and published today by analysts at Česká spořitelna and the Evropa portal in the data.
“While the Czechia appears on the imaginary podium in some of the areas examined, for example it ranks second in terms of economic complexity or third in terms of investment relative to GDP, its reserve is a low share of national income in domestic product and low value added,” according to the Czech Republic’s chief economist, David Navrátil.
The Prosperity Index compares the quality of life and prosperity of the Czech Republic with other EU countries. “In addition to macroeconomic data, it also examines aspects that affect the prosperity of individuals and looks for ways to improve living and business conditions in the Czech Republic. environment,” said Tomáš Odstrčil, analyst at the Evropa portal.
Within each thematic pillar, approximately ten indicators are monitored based on publicly available data sources (Eurostat, OECD, etc.) or data provided by the data and analytical team of Česká spořitelna. The individual results are then evaluated as the order of the states. The country with the highest number of these ‘penalty points’ is then placed at the end of the comparison, while the lowest score means the best result.
“The economic level measured by GDP per capita is higher in the Czech Republic than in Italy, Spain or Portugal. This is a great result of the economic transformation in the 1990s. However, the pace of catching up with the German level has slowed down significantly since The Czech economy has begun to hit its limits due to underinvestment, the labor market and the structure of the economy,” says Navratil.
Cyprus, Poland and Greece have the least healthy economies in the EU. The economies of these three countries are harmed mainly by high public debt compared to GDP, low investment rates relative to GDP and low GDP per capita. “Differences between national indebtedness are influenced by various factors, such as debt history, eurozone membership or budgetary discipline,” explained economist Danuše Nerudová.
According to the Prosperity Index, the economic complexity of the Czech economy is thus the second best in the EU. A high degree of diversification increases the economy’s resilience to shocks. However, this strength of the Czech economy is not reflected in high value added or national income. On the other hand, the Czechia is the third worst in these two variables, according to the index. Another area in which the Czechia has large reserves is the digitization of public administration.
Source: Česká spořitelna, Evropa portal and CTK
