Prague, the capital city of the Czech Republic, has ascended to prominence on the European economic stage, surpassing notable capitals such as Brussels, Paris, and Berlin in terms of GDP per capita. Eurostat data for 2022 reveals that Prague secured the fourth position among EU regions, marking a significant milestone in its economic trajectory. Petr Dufek, the chief economist of Bank Creditas, provided insights into this remarkable achievement.

While regions in Ireland and Luxembourg hold the top spots, Prague’s emergence as a leading economic hub underscores its exceptional growth and development. Notably, the city boasts a GDP per capita that is more than double the national average, signaling its pivotal role as a hub for corporate headquarters and economic activity. Dufek highlighted Prague’s accelerated economic growth over the past nine years, outpacing the rest of the country and widening the gap between the capital and other regions.

A compelling comparison drawn by Dufek is with Germany’s capital, Berlin, where Prague’s GDP per capita in purchasing power parity stands at sixty percent of Berlin’s. This disparity underscores Prague’s economic prowess within the region, despite Germany’s overall economic dominance. Moreover, Prague’s growth trajectory surpasses that of other regional capitals, such as Bratislava, which previously held a competitive position but now trails significantly behind Prague in terms of GDP per capita.

The evolving economic landscape also reflects broader geopolitical dynamics, with the Czech Republic distancing itself from Slovakia in terms of economic performance. Over the past decade, Slovakia’s GDP per capita relative to the Czech Republic has declined, further solidifying Prague’s position as an economic powerhouse within the Central European region.

While GDP per capita serves as a crucial metric for assessing regional economic performance, Dufek noted its limitations in fully capturing the standard of living or overall economic well-being. Nonetheless, it serves as a valuable indicator of regional disparities and offers insights into each country’s economic policy direction.

Prague’s ascent to become one of the wealthiest EU regions underscores its economic resilience, dynamism, and potential for continued growth, positioning it as a key player in the European economic landscape for years to come.

Article by Prague Forum