Prague is sixth-most developed EU region

Prague is the sixth most developed region in the European Union, based on GDP per capita calculated in purchasing power parity.

Luxembourg was in first place, followed by Hamburg, Brussels, the Bratislava region and London in fifth place, according to the Czech Statistical Office (ČSÚ), citing Eurostat research from 2015. Prague comes in ahead of Upper Bavaria, Paris and Stockholm in a list of the top nine regions.

“Prague looks very good in terms of its economic performance. It has maintained this position for a long time and is basically at the level of London,” ČSÚ Vice-President Marek Rojíček said in a press release.

Prague’s GDP in purchasing power parity was 183.4 in 2015 and 182.4 in 2016, compared to an EU average of 100. For international comparison, 2015 figures were used as that is the last year that figures for all EU regions were available. More recent figures from 2016 were used for domestic comparison.

The Czech capital was far ahead of the rest of the country. The real economic performance of the entire Czech Republic was 87.9 percent of the EU average in 2016. Central Bohemia was at 80.6 percent, Plzeň at 82.1 percent, Hradec Králové at 78.0 percent, South Moravia at 84.9 percent and Zlín at 76.1 percent of the EU average. The lowest Czech regions were Karlovy Vary at 58.5 percent and Ústí nad Labem at 64.9 percent.

“A comparison of regional data from 1996 to 2016 has confirmed that the regions with a predominant share of services and production with higher added value are doing better. This results in faster wage growth and living standards,” Rojíček said.

A quarter of the Czech GDP was created in Prague. The Central Bohemia Region followed with 12 percent and the South Moravian Region with 11 percent. The smallest contributions were reported by the Karlovy Vary and Liberec regions.

“Prague's share of overall GDP has risen from 20 percent to 25 percent over the last 20 years. The share of the Central Bohemia and South Moravia regions also increased. The contribution of other regions fell,” Vladimír Kermiet, ČSÚ’s director of the National Accounts Department, said.

From the point of view of the gross added value, the Central Bohemia and South Moravia regions dominated agriculture. The industry had its largest share largest share in the Central Bohemia and Moravia-Silesia region. Prague excelled in the construction and service sectors, as well as in finance and insurance, and in public administration, defense, education, health and social care.