Economy of the region
Over the long term, the economy of the Central Bohemia Region has
been growing at a faster rate than the EU28 countries and the region is
one of the most economically developed in Central and Eastern Europe.
The Central Bohemia Region has long been one of the most economically developed regions in the Czech Republic. Measured in GDP per capita, the level of economic prosperity reaches 84% of the EU28 average. Compared to other regions in Central and Eastern European countries, the Central Bohemia Region is one of the most developed.
GDP in regions in the Czech Republic 2017
The growth rate of the region’s economy has been higher than the national and European averages over the long term. The economic growth is on a higher order than in the other EU countries, and it is higher than Germany’s. Even though the economic performance of the Czech Republic as a whole since 2008 has been approaching the EU28 average at a much slower pace than previously, the economy of the Central Bohemia Region, with the exception of the crisis years of 2009 and 2012/13, has continuously grown, approaching the average of the EU28.
Annual GDP growth rate per capita 1996–2018
Foreign companies play an important role in the Central Bohemia economy, accounting for almost 75% of the output and 50% of the jobs in the business sector. The main reasons for such a strong influx of foreign companies is the region’s location in the centre of the Czech Republic and Europe and the significant price difference between Western and Eastern Europe.
Tyto faktory v souvislosti s postupnou integrací ČR do EU a společného evropského trhu zvýšily atraktivitu kraje pro zahraniční firmy. Jejich příliv byl v minulosti hlavním faktorem úspěšné transformace a modernizace ekonomiky a umožnil nastartovat rychlý hospodářský růst již v období let 2002–2008.
At first, they were mostly foreign companies whose competitiveness depended on low input prices. Gradually, however, more sophisticated activities with higher added value such as research and development would develop across the economic spectrum. This was aided by the region’s highly qualified and educated workforce and long industrial tradition with unique know-how. Last but not least, the geographic location and the proximity to the most economically developed regions in the EU also played its role.
The Central Bohemia Region has restored its rapid economic growth in the years since 2013 and it is again one of the fastest growing regions in the EU28.
Central Bohemia – The Industrial Heart of Europe
The Central Bohemia economy has a long tradition of industrial production. Unlike most old industrial regions, the Central Bohemia Region has undergone a major transformation of its industrial production, which is now increasingly reliant on research and development. The manufacturing industry, however, still plays a crucial role in the regional economy.
The companies operating in this field account for almost 40% of the economic output and create more than 30% of jobs. The importance of industry in the region’s economy has grown over time, unlike most other EU countries, and, when compared to other European regions, the manufacturing industry has a high share of the economic output.
