Prague, Bratislava lead CEE in GDP per capita

Prague and the greater Bratislava area were the only regions in Central and Eastern Europe (CEE) to make it into the top 10 for gross domestic product (GDP) per inhabitant, according to figures released Thursday by Eurostat, the statistical arm of the EU.

The new EU member states in in the CEE region in general, though, are still behind Western Europe. Parts of Bulgaria, Romania, Poland and Hungary accounted for all 20 of the lowest spots on the chart. “In 2008, GDP per inhabitant, expressed in terms of purchasing power standards … ranged from 28 percent of the EU-27 average in the region of Severozapaden in Bulgaria to 343 percent of the average in Inner London in the United Kingdom,” according to the Eurostat report, which is based on data from 2008.

In all, eight capital regions in the EU-27 filled the top 10 spots. Prague was in sixth place, with 172 percent of the EU average purchasing power, and the Bratislava region —which includes areas outside of the city as well — was ninth, with 167 percent.

For regions such as Prague that rely heavily in commuters from outside the region, the figures may be inflated. “GDP per inhabitant figures can be significantly influenced by commuter flows. Net commuter inflows in these regions push up production to a level that could not be achieved by the resident active population on its own. The result is that GDP per inhabitant appears to be overestimated in these regions and underestimated in regions with commuter outflows,” the report said.

Both high and low

The Czech Republic, Slovakia, Italy, Spain and the UK had regions on both the top and bottom of the Eurostat ranking. “Among the 40 regions exceeding the 125 percent level, 10 were in Germany, five in the Netherlands, four each in Austria and the United Kingdom, three each in Spain and Italy, two each in Belgium and Finland, one each in the Czech Republic, Denmark, Ireland, France, Slovakia and Sweden, as well as the Grand Duchy of Luxembourg,” Eurostat said. On the list of 64 regions below the 75 percent level, some 15 were in Poland, seven each in the Czech Republic and Romania

On the list of 64 regions below the 75 percent level, some 15 were in Poland, seven each in the Czech Republic and Romania, six each in Bulgaria and Hungary, four each in Italy and Portugal, three each in Greece, France (all overseas departments) and Slovakia, two in the United Kingdom, one in Spain, as well as Estonia, Latvia and Lithuania, the report said.

Overall, average GDP per inhabitant across Europe in 2008 was equivalent to €25,100, which was used the benchmark for 100 percent. For Prague, the figure reached €30,400, but that was twice the average for the country as a whole, which was €14,200.

In purchasing power standards (PPS), a Eurostat measure that calculates how many good can be purchased for the same amount of money, the EU-27 average was 25,100 PPS, while Prague was at 43,200 PPS and the country as whole at 20,200 PPS, or 80 percent of the EU average. The northwest of the country (Severozápad region) had the lowest GDP per inhabitant, €11,000 or 15,600 PPS.

Bratislava cracks into top 10

While the sixth-place finish is impressive, in the previous Eurostat report, released in 2010 but based on 2007 figures, Prague was in fifth place, also with 172 percent of GDP. Groningen, the Netherlands, jumped up from eighth to fourth place on the list, pushing Prague down. The Bratislava region was in place 12^th place in the previous ranking, and broke into the top 10 on for the first time on the new list. Prague has long been the leader among CEE regions in GDP per capita, and was in 12^th place after the EU enlargement.

The rest of the Visegrád Four countries trailed behind the Czech Republic in the 2010 list, and their leading regions lagged behind Prague. For Slovakia, the overall GDP per inhabitant was €11,900, or 72 percent of the EU average PPS, with the Bratislava region coming in at €27,500. Hungary had an even lower national average, €10,600, or 64 percent of the EU average PPS, and a high of €17,600 in the Közép Magyarország region, which includes Budapest. Poland was lower still, with an average of €9,500, or 56 percent of the EU average PPS, and a high of €15,000 in the Mazowieckie area, which includes Warsaw.

Prague has long been the leader among CEE regions in GDP per capita, and was in 12^th place after the EU enlargement, scoring 160 percent of the average GDP in 2005, while Bratislava had 147.9 percent and didn’t make it into that year’s top 15 list. The Czech Republic was at 77 percent of the EU average PPS in 2005, and Slovakia was at 60 percent.