The Czech Republic has jumped twelve places in The Economist’s annual ranking of the world’s best-performing economies, moving from 18th last year to 6th in 2025.

Despite political debates suggesting economic difficulties, experts note that the country has sustained steady growth, with most estimates pointing to GDP growth of around 2.5 percent this year.

“The Czech Republic and Colombia are showing decent growth in both gross domestic product and employment, which moves them into the top third of our ranking,” The Economist highlighted, also noting strong performance on the Prague Stock Exchange, where the PX index rose 41.6 percent from January to November.

The magazine’s ranking does not rely solely on GDP growth. Other factors include inflation management, employment trends, and stock market performance, all reflecting broader economic stability.

According to the Czech National Bank, average inflation is projected at 2.5 percent for 2025, slowing to 2.2 percent in 2026, while unemployment held steady at 4.6 percent in November.

Despite these positive indicators, the Czech economy still faces structural challenges: a heavy reliance on the automotive sector, low investment levels by both the state and private companies, labor shortages, high energy costs, housing affordability issues, and ongoing bureaucracy.

Broader Regional Highlights

Poland rounds out the top ten, with GDP growth of 3.8 percent in Q3, a one-third increase in its stock market, and slightly higher unemployment than the Czech Republic. Hungary, not included in the top rankings, saw inflation drop to 3.8 percent in November, while Slovakia, at the bottom of the ranking, slowed consumer price growth to 3.7 percent and recorded 0.9 percent GDP growth in Q3, its highest this year.

2025 Global Economy Ranking (Top 10)

• Portugal
• Ireland
• Israel
• Colombia
• Spain
• Czech Republic
• Greece
• Canada
• Slovenia
• Poland

The Economist’s ranking highlights countries that have best managed inflationary pressures, employment challenges, and market confidence over the past year, rather than the largest or wealthiest economies.

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