Prague was the seventh richest EU region

The country as a whole though, still lags behind the EU average

Prague was the seventh richest region in the European Union in 2016. According to Eurostat, the richest was London - West, where the gross domestic product (GDP) per capita expressed in purchasing power standard (PPS) was 611 percent of the EU average, based on figures from 2016.

In the previous ranking, Prague was in sixth place, but its GDP per capita increased and overall the region has been rising. In 2013 Prague was in ninth place.

GDP per capita in Prague in 2016 was 182 percent of the EU average, up from 178 percent. Bratislava in 2016 was just ahead of Prague at 184 percent of the EU average and had the highest score of any former Eastern bloc region.

The Czech Republic as a whole was only at 88 percent of the EU average. The EU counts eight regions in the Czech Republic and the other seven aside from Prague were all below the EU average.

The second highest region was Jihovýchod (Southeast), which includes the Vysočina and South Moravia regions. It was at 81 percent of the EU average.

The Severozápad (Northwest) region, including Karlovy Vary and Ústí nad Labem regions, was lowest at just 63 percent of the EU average.

Eurostat said GPD per capita in Prague was €34,700, and GDP in PPS was €53,100. For the whole country, GPD per capita was €16,700 and GDP in PPS was €25,600.

Prague also accounts for 25 percent of the Czech Republic’s GDP,

One factor that boosts Prague’s ranking is commuters, as the Central Bohemia region was only at 80 percent of the EU average. “In some regions, the GDP per capita figures can be significantly influenced by commuter flows. Net commuter inflows in these regions push up production to a level that could not be achieved by the resident active population on its own. There is a corresponding effect in regions with commuter outflows,” Eurostat said in a press release. In other words, Central Bohemia’s loss in GDP due to commuters working in the city becomes Prague’s gain.

There was a big range in the EU as well. “In 2016, regional GDP per capita, expressed in terms of purchasing power standards, ranged from 29 percent of the European Union average in the Bulgarian region of Severozapaden, to 611 percent of the average in Inner London - West in the United Kingdom,” Eurostat stated.

After London - West there was a big gap before the Grand Duchy of Luxembourg (257 percent), the Southern & Eastern region in Ireland (217 percent), Bruxelles/Brussel in Belgium and Hamburg in Germany (both at 200 percent).

“There were 19 regions with GDP per capita 50 percent or more above the EU average in 2016: five were in Germany, three in the United Kingdom, two in Austria, one each in Belgium, the Czech Republic, Denmark, Ireland, France, the Netherlands, Slovakia and Sweden, as well as the Grand Duchy of Luxembourg,” Eurostat said.

At the lower end, after Severozapaden in Bulgaria, the lowest regions in the ranking were Mayotte in France (33 percent), Severen tsentralen and Yuzhen tsentralen in Bulgaria (both 34 percent) and Nord Est in Romania (36 percent). “Among the 21 regions with GDP per capita below 50 percent of the EU average, five were in Bulgaria and Poland, four in Hungary, three in Romania and Greece and one in France,” Eurostat said.

GDP per capita provides a measure of the total economic activity in a region. It may be used to compare the degree of economic development of regions. GDP does not measure the income ultimately available to private households in a region, the report states.

The PPS (purchasing power standard) is an artificial currency that takes into account differences in national price levels. This unit allows meaningful volume comparisons of economic indicators across different countries.

Related articles

Facebook comments

Expat Mortgages Prague

Need a mortgage?

Ing. Martin Straňák

Translator and interpreter of the English language -...

Bad Jeff's Barbecue

American-style BBQ with a twist

Rustic Jerky

Superfood for Carnivores!

Honeywell, spol. s r.o.

Driving Infinite Possibilities Within A Diversified, Global...

JUDr. Markéta Allnutt

English-speaking lawyer specializing in real estate, family...

People Matter s.r.o

Consulting in People Matter....Because People Matter

Law Office Šoralová

Advokátní kancelář Šoralová


PragueMonitor.com

Prague’s # 1 source for Czech news in English…


PragueConnect.cz

Expat and Czech Business Professional Network


Tschech.News

German Language Info Service