Prague is the third richest region in the EU

Prague ranked third among Europe’s 281 regions in terms of gross domestic product per inhabitant, according to the data from 2019. Prague has strengthened its position in the ranking over the past decade. The Czech capital outranked European metropolises such as Stockholm, Paris, or Vienna, in the list of richest EU regions published by Eurostat. Gross domestic product (GDP) per capita, expressed in the standard of purchasing power which allows for international comparison, was in the case of Czech capital a total of 205% of the European Union average.

GDP per capita provides a measure of the total economic activity in a region and is commonly used to express the degree of economic development of states. The statistics are based on a recalculation of GDP according to purchasing power standards, therefore, taking the local prices of goods and services into consideration. However, GDP does not measure the income ultimately available to private households in a region.

According to Eurostat and besides Prague ranking third, the leading regions included Luxembourg (260%), the Southern region in Ireland (240%), Brussels and Eastern & Midland in Ireland (both 202%) as well as Hamburg (195%). Eurostat explains the high GDP per capita in these regions partly by a high inflow of commuting workers – which is the case of Prague, Luxembourg, Brussels and Hamburg, or by the large capital assets owned by some multinationals domiciled in the regions such as in the case of Southern and Eastern & Midland in Ireland.