Czechia dropped one position in the EU Prosperity Index last year, slipping from 15th to 16th place, primarily due to worsening housing accessibility.
The annual index—compiled by Česká spořitelna and the data portal Evropa v datech—was shared with ČTK and highlights long-term trends in living standards across the European Union.
Housing emerged as the country’s weakest area, reflecting escalating property prices, prolonged construction timelines, and steep home maintenance costs. These challenges significantly contributed to Czechia’s overall decline, despite strong performances in healthcare and public safety, including accessible medical services and high standards in cybersecurity.
“Czechia worsened its performance in six out of ten categories, bringing us closer to Eastern European countries that rank at the lower end of the prosperity index,” said Evropa v datech analyst Tomáš Odstrčil.
Housing conditions remain particularly difficult for women and young people, who face limited pathways to home ownership. While renting had been a more attainable option in the past, the current rental market now aligns with the EU average in terms of affordability. “The current housing crisis affects young people the most. Without financial support from family, owning a home is becoming an increasingly unreachable dream. And renting doesn’t offer much security either,” said Martin Lux from the Institute of Sociology of the Czech Academy of Sciences.
Environmental sustainability and business conditions are also areas of concern, with Czechia ranking 22nd in both. High emissions from heating and land use have worsened the country’s environmental standing. In business, issues include a shortage of startups, low domestic capital investment, dominance by foreign companies, and the weak position of the Prague Stock Exchange—factors that collectively discourage entrepreneurship. Additionally, a threefold increase in electricity prices over the last three years has put extra strain on business owners.
Digital infrastructure presents a mixed picture. While mobile connectivity is strong—5G covers 96% of the population—fixed high-speed internet access remains limited. With just 54% coverage, Czechia ranks second-to-last in the EU, ahead of only Greece.
Despite these setbacks, Czechia has shown notable improvement in household financial stability. The country climbed from 13th to 9th place in this category, thanks in part to a strong household savings rate. “The household savings rate increased above the long-term average already during the pandemic, especially among higher-income households. Its continued level in recent years can partly be explained by the relatively high interest rates in Czechia, which remained above the EU average,” said Tereza Hrtusová from Česká spořitelna.
Health and safety remain Czechia’s strongest areas, placing the country at the top of the Prosperity Index in this domain. This success is attributed to robust cybersecurity protections, low infant mortality rates, and broad access to healthcare services.
