EUROSTAT: PRAGUE IS THE FOURTH-RICHEST REGION IN THE EU

Prague has one of the highest rates of GDP per capita in the whole EU, based on purchasing power parity.

According to new Eurostat data, Prague has surpassed Brussels, Paris, and Berlin to become one of the top-ranked regions in the EU in terms of GDP per capita by purchasing power standards. The Czech capital is the fourth-richest region in the EU due to the presence of several multinational companies (as well as their headquarters) and international workers.

According to Eurostat, the number of multi-national companies headquartered in Prague have contributed significantly to the city’s impressive economic development, resulting in a GDP per inhabitant that is more than double the national average. Several regions in Ireland and Luxembourg have surpassed Prague’s economic performance.

A city’s high GDP per capita often results from a robust and diverse economic base driven by technology, finance, and manufacturing industries. Furthermore, a well-educated and skilled workforce contributes to higher productivity and innovation, further boosting the city’s economic output.

Compared to Warsaw and Paris, Prague exhibits significantly stronger economic performance, boasting a GDP per capita that is 25 percent higher. The contrast with Bratislava is also notable. However, the Slovak capital was ahead of Prague in 2013; over the past nine years, Prague’s GDP per inhabitant has grown by 48 percent, whereas Bratislava’s has increased by just 2 percent.

Berlin’s GDP per capita is just 60 percent of Prague’s. That said, Germany as a whole has a 30 percent higher GDP per capita compared to Czechia.

Within Czechia, other regions show substantially lower GDP levels. These are lowest in the Karlovy Vary and Ústí nad Labem regions. Vysočina and South Moravia have the next-highest rates of GDP per capita after Prague.

Chief economist at Creditas Bank Petr Dufek told Novinky.cz that GDP per inhabitant is an interesting indicator of a city’s economic level, but does not fully indicate what the standard of living is in a given region: that is, whether the rise in the standard of living or the profitability of companies contributes to the increase in a country’s GDP.

On the other hand, it shows significant regional differences in each country and indicates where that nation’s economic policy should be heading.

In 2019, Eurostat data showed that Prague was the EU’s third-richest region.