The Czech Republic has dropped one place in the Prosperity Index compared to the previous year. Although a fall of one place may not seem significant at first glance, it represents a further decline in the index, which is compiled annually by Česká Spořitelna and Evropa v Datech. In 2022, the Czech Republic was still ranked 13th, with the country performing worst in terms of housing affordability.
Among the ten pillars of the index — including economy, education and research, labour market, and environment — the Nordic countries generally offer the best living conditions. Yet even they face challenges. Sweden, for example, has the strongest economy, the best access to education and research, and a positive long-term environmental balance, but falls into the European mid-table for infrastructure and safety.
After Sweden and Denmark, Austria enters the top three for the first time, having improved its standard of living across almost half of the indicators. Greece ranks last, Bulgaria second to last, and Slovakia completes the trio of least prosperous countries in the EU at 25th place.
Unaffordable housing hits young people in the Czech Republic particularly hard
The housing market has long been one of the Czech Republic’s most problematic areas. High prices, lengthy approval procedures, rising household costs, and expensive new builds make it difficult for people to realise their housing aspirations. The Czech Republic ranks among the six weakest countries across almost all relevant indicators.
Electricity prices, lack of new start-ups and low market capitalisation weigh on companies
The business environment is also under pressure: a low number of start-ups, a high proportion of foreign companies in value creation, and the low capitalisation of the Prague Stock Exchange — a factor that deters potential investors — are having a negative impact. The start-up rate remains generally low.
Among the most entrepreneurially active regions, Prague is clearly in the lead with 152 entrepreneurs per 1,000 inhabitants. However, smaller towns in Central Bohemia such as Říčany, Černošice, and Sedlčany also perform very well. Jilemnice in the Liberec region is also notable, with a score of 131.
Added to this are rising electricity prices, which have tripled in three years. One possible solution could be to invest in renewable energy sources.
Clearest improvement in the area of financial health
However, there are also positive developments. Progress in the area of financial health is particularly clear: from 13th place in 2022 and 12th place the following year, the Czech Republic improved to 9th place in 2024 among the 27 EU states. The decisive factor was that most indicator values improved or at least remained stable.
Czech Republic leads the EU in health and safety
The Czech Republic also recorded positive developments in safety and healthcare. The country was already on the ‘podium’ in the first year of the Prosperity Index — since then it has moved closer to the top each year, even reaching it last year. This is partly thanks to effective protection against cybercrime, a very low infant mortality rate, and comparatively accessible medical care.
