Czech living standards on par with Slovenia, surpass Spain and Portugal

According to new data from the CZSO, among the Visegrad Group nations, the country maintains the highest living standards.

ČTK

Written by ČTK Published on 19.12.2024 09:06:00 (updated on 19.12.2024) Reading time: 2 minutes

Daily News Economy
Shutterstock: Stock-Asso
Shutterstock: Stock-Asso

The Czech Republic's standard of living edged closer to the European Union average last year, reaching 91 percent of the EU’s GDP per capita in purchasing power standards, according to the Czech Statistical Office’s (CZSO) newly released Statistical Yearbook 2024.

The increase, up one percentage point from the previous year, places the Czech Republic on par with Slovenia. Among the Visegrad Group nations (Czech Republic, Slovakia, Poland, Hungary), the country maintains the highest standard of living.

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Luxembourg recorded the highest GDP per capita at 234 percent of the EU average, while Bulgaria ranked lowest at 64 percent. Among the EU nations that joined since 2004, Malta exceeded the EU average with 105 percent, followed by Cyprus at 95 percent and the Czech Republic and Slovenia tied for third.

How are living standards measured?

  • Purchasing Power Standards (PPS) measure and compare the economic performance of countries by taking into account cost of living and price levels in each country.
  • Gross Domestic Product (GDP) is adjusted so that one unit of currency has the same purchasing power across all countries. This helps to compare how much people in different countries can actually buy with their income.
  • For example: If a loaf of bread costs €1 in one country and €2 in another, PPS adjusts for this difference, making the economic figures more comparable in terms of real-world affordability.
  • In the Czech Republic PPS adjustment shows that its standard of living is now 91 percent of the EU average, meaning economic conditions are closer to wealthier EU countries, even if raw income might appear lower.

The Czech Republic also surpassed older EU member states such as Spain (88 percent), Portugal (83 percent), and Greece (67 percent).

Economic contraction amid EU growth

Despite the rise in living standards, the Czech economy contracted by 0.3 percent last year, making it one of 11 EU nations to experience a GDP decline. Ireland and Estonia faced the steepest downturns at 3.2 percent and 3 percent, respectively. Meanwhile, Malta posted the fastest economic growth at 5.7 percent, followed by Croatia at 3.1 percent. Overall, EU GDP grew by 0.5 percent.

Unemployment remains lowest in the EU

The Czech Republic retained the EU’s lowest unemployment rate at 2.6 percent, despite a 0.4 percentage point increase from the previous year. This remains well below the EU average of 6.7 percent. Poland recorded the second-lowest unemployment at 2.8 percent, while Spain had the highest rate at 12.2 percent.

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In terms of long-term unemployment, the Czech rate was 0.8 percent, behind Denmark, the Netherlands (both at 0.5 percent), and Malta (0.7 percent). Greece reported the highest long-term unemployment rate at 6.2 percent, with the EU average at 2.1 percent.

To see the 2024 statistical overview, visit the Czech Statistical Office website.

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