The Czech Republic has made significant progress in the ranking of European economies and is once again among the ten strongest in the EU. A decline in inflation, rising national income, and stable public debt have contributed to this improvement.
Currently, the Czech Republic is the ninth strongest economy among the 27 EU member states, having moved up five places compared to the previous year. Lower inflation, increasing national income, and stabilised public debt have helped secure its position in the top ten. As a result, the Czech economy is now in better shape than, for example, those of Belgium or Italy, returning to its 2022 level. This is according to the Prosperity and Financial Health Index (Index prosperity a finančního zdraví), published by Česká spořitelna in collaboration with the Europe in Data platform.
According to the report, the Czech Republic’s rise in the European rankings is primarily due to the sharp decline in inflation. While inflation exceeded 15 per cent in 2023, it averaged just 2.7 per cent last year. In addition, an increasing share of income and capital is remaining within the country, further strengthening the domestic economy.
The data also show that the Czech Republic remains one of the least indebted countries in the EU. In 2023, public debt surpassed the three-trillion-Czech-koruna mark (around EUR 119 billion), but thanks to nominal economic growth, the relative debt level fell to approximately 42 per cent of GDP—well below the eurozone average, which is nearly twice as high.
However, the index also highlights a key weakness: the Czech Republic has the third-lowest share of gross value added in total production in the EU. This is also reflected in export value added, which ranks among the seven lowest in the bloc. In essence, much of the country’s value-added activity remains limited to assembly work, with insufficient domestic innovation, technology, and expertise. A shift from subcontracting to the production of end products with higher added value would be a crucial step forward.
According to the index, Sweden has the strongest economy in Europe, followed by Germany, Denmark, and Austria. At the bottom of the ranking is Greece, followed by Poland. Neighbouring Slovakia ranks 24th.
