Czechia Rises in EU Prosperity Index - Housing and Digitalization Remain Weaknesses
Prague Morning
The Czech Republic has improved its position in the latest EU Prosperity Index 2025, ranking 14th out of 27 member states.
This marks its strongest result since the index was first published in 2022, when the country placed slightly higher at 13th.
At the top of the ranking are Sweden, Denmark and Finland. Greece remains in last place, followed by Bulgaria and Slovakia.
The country’s overall improvement was driven mainly by the “State of the Economy” indicator, which rose five places year-on-year. With a ninth-place result in this category, the Czech Republic now ranks among the ten most economically stable EU countries.
The development reflects easing inflationary pressure and a shift in income distribution. The share of gross national income in GDP increased from 95% to 99%, suggesting that a larger portion of wealth generated in the economy remains within the country.
Despite these gains, the index highlights persistent structural weaknesses. Housing remains one of the main pressure points. The Czech Republic ranks 23rd in the EU in this area. The average price of an apartment equals 13.6 annual salaries, and around 10% of households spend more than 40% of their income on housing costs.
Digitalisation also continues to lag behind other EU countries. While the Czech Republic moved up to 21st place in the digitalisation of public administration, its performance in digital infrastructure remains below average, limiting broader progress in this area.
The report also points to low value added in the economy as another long-term challenge, suggesting that structural improvements will be needed to maintain convergence with the EU average in the coming years.
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