Rank 8 for the Czech Republic in the new Prosperity Index: Strongest post-communist economy in the EU

A top position in the EU comparison underlines the economic strength of the Czech Republic. Yet a direct comparison with Poland shows that behind solid figures lie structural challenges, particularly in value added from exports.

According to the latest Index of Prosperity and Financial Health (Index prosperity a finančního zdraví), the Czech Republic is the most successful post-communist economy in the EU. In the fifth year of the survey, the country achieved eighth place in the “State of the Economy” pillar – its best result to date in this category. Particularly notable: despite high investment and a strong industrial base, value added remains behind that of Poland.

A look at the overall ranking shows a consistent picture at the top: Sweden, Germany and Denmark have held the leading positions for years. The Czech Republic started 2022 in ninth place but fell to twelfth and fourteenth in the following two years. The main reason was high inflation following Russia’s attack on Ukraine.

Among the post-communist EU states, the Czech Republic has nonetheless maintained its top position over the long term. After finishing second behind Slovenia in 2024 and 2025, the country is now back at the top.

Robotics as an advantage

A direct comparison with Poland presents a more nuanced picture. While Polish media often portray rapid economic growth – for example, through the fast expansion of infrastructure – the index data tell a different story.

The Czech Republic leads clearly in robotics: 216 industrial robots per 10,000 manufacturing employees, compared with 81 in Poland. It also leads in the investment ratio (26.5 per cent of GDP versus 17 per cent) and per capita GDP (91 per cent of the EU average versus 78 per cent). Moreover, it is among the most complex economies in the EU – meaning it can produce a particularly wide range of sophisticated products. This diversification makes the country more resilient to external shocks.

Weakness in value added

Yet there is a key weakness: domestic value added in exports. Here, Poland ranks eleventh in Europe with a share of 66.7 per cent, while the Czech Republic, at 58.2 per cent, falls into the lower third. Specifically, this means that a greater share of final value remains in Poland when using imported inputs.

Economists attribute this to the structure of the business model. The Czech Republic is strong in component manufacturing and high-tech exports, but brand rights, end margins, and intellectual property often reside abroad. Poland, on the other hand, benefits from a larger domestic market and a stronger capital market, supporting the development of its own brands and final products.

Investment with question marks

The Czech Republic invests above average in the EU – both privately and publicly. However, funds are primarily directed towards machinery and equipment. The share of intangible investments such as patents, software or brand rights remains at 19 per cent, well behind countries like Denmark (30 per cent) or Sweden (29 per cent).

A change is also visible in foreign direct investment. The stock relative to GDP has fallen in recent years. Rising wages, low unemployment, and high energy prices make the country less attractive for simple production models. Economists see this as a sign of economic maturity, but it simultaneously increases pressure to focus more on innovation and domestic value added.

A success story with an open outcome

Despite structural deficits, the overall picture remains positive. The Czech Republic has a robust, diversified economy and maintains its leading role among post-communist EU states.

Whether it can hold this position in the long term depends on its ability to change investment behaviour – moving away from being a subcontractor towards more in-house development, capital formation, and internationally visible brands. The current success is indisputable. The question is how sustainable it is.