The Czech Republic has made a remarkable leap in The Economist’s 2025 global ranking of the best-performing economies, moving from 18th place last year to 6th position. The ranking takes into account not only GDP growth, but also factors such as inflation, employment, and stock market performance.

The Czech economy has maintained solid growth—estimated at 2.5% GDP increase in 2025. Inflation is projected at 2.5% for this year, declining to 2.2% in 2026, according to the Czech National Bank. Unemployment remains stable at 4.6%, and the Prague Stock Exchange index (PX) surged by over 41% between January and November, indicating strong investor confidence.

The Economist praised Czechia for balanced growth in GDP and employment, placing them in the top third of the ranking. However, the Czech economy still faces structural challenges, including overdependence on the automotive sector, low investment levels, labor shortages, rising energy prices, and limited housing affordability.

In regional comparison, Poland also made the top 10 with strong GDP and stock market performance, while Hungary and Slovakia lagged behind due to weaker growth and broader economic constraints.

The Economist’s ranking highlights countries that have best managed inflation, labor markets, and market confidence—not necessarily the largest or wealthiest economies.

Source: praguemorning.cz

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