Sweden, Germany and Denmark came out best. The Czech Republic placed just behind Belgium.
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The level of GDP per capita in the Czech Republic is higher than in Italy, Spain or Portugal
David Navrátil, Česká spořitelna
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“The economic level measured by gross domestic product (GDP) per capita is higher in the Czech Republic than in Italy, Spain or Portugal. This is a great result of the economic transformation in the 1990s, “stated David Navrátil, Česká spořitelna’s chief economist.
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“However, since 2008 the pace of catching up with the German level has slowed down significantly. We are in danger of falling into the trap of a middle-income economy, “he said. According to him, the Czech economy began to hit its limits due to underinvestment, a tight labor market and the structure of the economy.
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By contrast, Cyprus, Poland and Greece have the least healthy economies in the EU. The economies of these countries are mainly damaged by high public debt and low levels of investment relative to performance, as well as low GDP per capita.
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According to Navrátil, the Czechia is on the imaginary podium in some of the areas examined.
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Specifically, for example, in second place when looking at how complex the domestic economy is, and in third place in terms of investment relative to GDP.
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“On the contrary, its reserve is a low share of national income in the domestic product and low added value of the economy,” Navrátil pointed out.
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The advantage of diversification
“While we have a large GDP, because there is a massive industrial production with great export potential, it is not so good in gross national product, because part of the production is not in our ownership,” confirmed the law of BH Securities Štěpán Křeček on Thursday.
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He cited large banks as an example: “We see that most of them are owned by foreign parent banks. Although they do business in our territory, the profits are offset by us. “
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According to Navrátil, the Czech economy is also highly diversified, which increases its resilience to shocks. The weakness, however, is that it does not translate much into high added value or the aforementioned national income. In these two variables, on the other hand, the Czechia finished third from the end.
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In gross national product, it is no longer so good, because part of the production is not in our ownership
Štěpán Křeček, BH Securities
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“If we simplify it a lot, we have already caught up with Germany in terms of production. But the added value, or more simply the margin we are able to gain from this production, is 20 percent lower than in Germany. And another ten percentage points lower the national income, which will eventually remain in the Czech Republic, “said Navrátil.
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During the creation of the index, the researchers worked with publicly available data from Eurostat, the OECD, the World Bank, the UN, the World Health Organization and the data of the analytical team of Česká spořitelna.
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How they got the results
The state of individual EU economies was evaluated according to ten criteria: economic complexity, GDP per capita, GDP to GNP ratio, gross value added to total output, inflation rate, investment rate to GDP, number of robots per 10,000 employees, export value added, foreign direct investment and public debt to GDP.
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In addition to the state of the economy, the researchers dealt with nine other chapters, such as education, health or the environment. They will publish the results on an ongoing basis.
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