According to data from the Czech Statistical Office (CSO) in the recently released 2023 Statistical Yearbook, the Czech Republic experienced a marginal decline in its living standard in 2022 compared to the European average. Measured in purchasing power standards, the Gross Domestic Product (GDP) per inhabitant dropped by one percentage point, settling at 91 percent of the European Union average. This places the Czech Republic on par with Cyprus and Slovenia (92 percent) and slightly behind Italy (96 percent).

In contrast to many European nations, the Czech economy has not fully rebounded to pre-pandemic levels. While the Czech economy recorded a 2.4 percent growth in 2022, it fell short of the EU’s overall growth rate of 3.5 percent. Ireland exhibited the fastest-growing economy, with a 12 percent increase, while Estonia had the weakest economic performance, contracting by 1.3 percent.

Within the countries that joined the EU in 2004, the Czech Republic is ranked fourth, with Slovenia and Cyprus surpassing it compared to the previous year. Malta stands out as the country with the highest living standard among these, exceeding the EU average at 102 percent.

The Visegrad Group countries (Czech Republic, Slovakia, Poland, and Hungary) showcase the Czech Republic as the leader in terms of GDP per inhabitant in purchasing power standards. Poland’s living standard is at 80 percent of the EU average, Hungary at 77 percent, and Slovakia at 68 percent. Among the older member countries, the Czech Republic surpasses Spain (85 percent), Portugal (77 percent), and Greece (68 percent).

Despite the economic challenges, the Czech Republic maintained its position with the lowest unemployment rate in 2022, decreasing by 0.6 percentage points to 2.2 percent, compared to the European average of 6.2 percent. Malta secured the second-lowest unemployment rate at 2.9 percent, while Spain faced the highest at 12.9 percent.

Inflation impacted all EU countries last year, with the Czech Republic experiencing the fifth-highest average value at 15.1 percent. Estonia recorded the highest annual inflation at 19.4 percent, while France had the lowest at 5.9 percent, with the European average at 9.2 percent.

Article by Prague Forum