Prague is Now the Fourth Richest Region in the European Union

Prague is now the fourth richest region in the European Union by GDP per capita, ahead of cities like Brussels, Paris, and Berlin.

“Prague holds the number four spot in the EU regional ranking for 2022, based on GDP per capita,” confirmed Petr Dufek, chief economist at Bank Creditas.

While two Irish regions and Luxembourg currently hold the top positions, Dufek highlighted the stark contrast between Prague’s prosperity and the rest of the Czech Republic, with the capital boasting more than double the national GDP per capita.

“Prague’s success stems in part from hosting the headquarters of many major companies,” explained Dufek.

However, a concerning disparity is emerging within the country. “Over the past nine years, GDP per capita has grown significantly faster in Prague than in other regions, widening the gap,” he noted.

For further perspective, Dufek compared Prague to its neighbor, Berlin. “In terms of purchasing power parity, Berlin’s GDP per capita is only 60% of Prague’s, while Germany as a whole remains 30% wealthier than the Czech Republic.”

Bratislava

“In 2013, Bratislava surpassed Prague,” Dufek revealed. “But the latest data paints a different picture, with Bratislava now trailing at 71% of Prague’s level. Its GDP per capita has witnessed a meager 2% increase over the past nine years, whereas Prague’s skyrocketed by 48% in the same period.”

“This aligns with a wider trend,” stated Dufek. “The Czech Republic is gradually distancing itself from Slovakia economically. While Slovakia enjoyed 92% of the Czech Republic’s GDP per capita in 2012, this figure had plummeted to just 80% by 2022.”

However, Dufek cautions against misinterpreting the GDP as a direct measure of living standards.

“The rise in GDP could reflect growth in corporate profitability rather than necessarily leading to an improved standard of living for residents,” he clarified. Nevertheless, the data unveils significant regional disparities within countries, potentially informing future economic policy directions.