Czechia Climbs to 14th Place
Czechia has achieved its strongest result yet in the EU Prosperity Index, climbing two places to 14th in this year’s ranking. It is the country’s best position since the index was launched in 2022, reflecting a combination of economic growth, relatively stable public finances, strong healthcare access, and a leading position in cybersecurity.
The country’s economy grew by 2.6 percent last year, helping improve its overall standing. Healthcare remains one of Czechia’s clearest strengths, with access available to 99.5 percent of the population. The index also places Czechia first in the EU for cybersecurity, highlighting long-term cooperation between the state, private sector, and academia.
Strong Performance, No Single Prosperity Model
The EU Prosperity Index shows that high-ranking countries do not all follow the same path. Sweden, Denmark, Finland, Austria, and the Netherlands remain among the strongest performers, but their advantages differ. Sweden leads on environmental performance, while the Netherlands performs strongly in labor markets and digitization.
For Czechia, the results offer a mixed picture. The country is competitive in several important areas, yet the index also identifies structural weaknesses that directly affect daily life. These include housing affordability, digital public services, long-term healthcare sustainability, education funding, and defense preparedness.
Housing Affordability Is the Main Crisis
Housing is the most serious weakness identified in the index. Czechia ranks fifth worst in the EU for affordability, with the average apartment costing 13.6 annual salaries. In Prague, the situation is even more severe: a new 70-square-metre flat requires nearly 15.9 annual wages, making the capital the least affordable in Europe for new apartments.
Prague is now less affordable than Bratislava, Munich, Warsaw, Berlin, and Vienna. Over the past decade, new apartment prices in Prague have risen nearly 180 percent, while wages have grown by about 80 percent. Limited housing supply, slow planning, and permitting processes are cited as key reasons.
Long-Term Challenges Ahead
The index also warns about Czechia’s weaker digitization, ranking the country 21st in the EU despite recent improvement. It criticizes the absence of basic e-government functions, including pre-filled forms and digital administrative processes.
Healthcare is another concern. Although widely accessible today, the system is described as financially unsustainable over time. Education is also flagged as underfunded at 4.5 percent of GDP, while adult retraining remains limited.
Link: What the EU Prosperity Index actually says about life in Czechia – Prague, Czech Republic
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