Prague now ranks as the EU's third-richest region by GDP per capita in PPS

Prague now ranks third in the European Union in GDP per capita expressed in terms of national purchasing power standards (PPS), according to a new report published last month by Eurostat. The report references data from 2019, and does not take into account potential effects from the coronavirus pandemic.

Among European regions, only Luxembourg (260% of the EU average) and Ireland's southern region (240%) boasted a higher GDP per capita in PPS than Prague.

Prague's GDP per capita in PPS came in at 205% of the EU average in the new report, topping the regions of Eastern & Midland in Ireland (202%) as well as Hamburg in Germany (195%).

Eurostat partly credits Prague's high ranking to the wealth created and assets owned by multinational corporations based in the Czech capital as well as the high number of commuters who travel to work in the city. 

The capital region ranked considerably higher than other regions of the Czech Republic. Northwest, a statistical region comprised of the Czech Republic's Karlovy Vary and Ústí nad Labem regions, saw a nationwide low GDP per capita in PPS at less than 65% of the EU average.

Across the EU, the lowest numbers were seen in the Northwest region of Bulgaria as well as Mayotte, an overseas region of France, both at 32% of the EU average.

Prague has been steadily moving up in Eurostat rankings of GDP per capita. Two years ago, the Czech capital ranked seventh in Eurostat's previous GDP per capita rankings, based on 2017 data.

Inner London, which easily topped that list, is no longer part of the EU and not included in this year's report. But Prague surpassed Hamburg, Brussels, and Eastern & Midland Ireland to come in at third in this year's rankings.

GDP per capita measures the total economic activity of a region, and does not necessarily correlate to the income or purchasing power of an individual person or household.

Going by GDP per person employed, Prague ranks much closer to the EU-wide average of €66,800.

According to 2021 estimates by the International Monetary Fund, the Czech Republic as a whole ranks 30th in the world in GDP per capita and 12th in the EU.

The IMF forecasts GDP per capita to increase faster in Europe than in other areas over the next half-decade, and for the Czech Republic to surpass Japan and New Zealand by 2025.