Despite political claims that the Czech Republic is enjoying its best era in history, economic data and the daily struggles of ordinary citizens suggest a starkly different reality.
According to a new analysis by the Creditas group, while Czechia boasts the highest GDP per capita in the Visegrád Four, that lead is narrowing, and living standards are lagging behind.
Czechs now pay more for electricity than any of their V4 neighbors. Václav Skoblík of the UCED group reported that Czech households pay 0.33 euros per kilowatt-hour — three times more than Hungarians and nearly double what Slovaks pay. In contrast, fuel remains the cheapest in the region, thanks to a strong domestic currency and steady taxation. But when adjusted for purchasing power, even gasoline is nearly twice as expensive as in Germany.
The economic gap with regional neighbors is closing, just not in the Czech Republic’s favor. In the past 20 years, Poland has narrowed its distance from the EU average income level by 27 percentage points. Slovakia and Hungary have gained 17 and 15 points respectively. The Czech Republic, by comparison, advanced only 10 points. Poland is also now considered more affordable overall, with more accessible housing and cheaper food.
Inflation has been a major factor in the decline of Czech purchasing power. Prices have risen by nearly 52 percent since 2015, and while inflation dropped to 1.8 percent in 2025, real wages remain stuck at 2018 levels. “Such strong inflation is unprecedented in our modern history, and people rightly perceive it as a fundamental life problem,” said economist Miroslav Zámečník.
David Marek, chief economist at Deloitte, noted that wages have only recently begun outpacing inflation, but the prior surge in prices has already eroded earnings. The median wage is now 41,739 crowns, yet two-thirds of workers still earn less than the national average.
A growing number of Czech households are financially vulnerable. An NMS agency survey found that 25 percent of households have no savings, and 7 percent live “from day to day.” Four in ten families would not survive more than two months without income. Consumer debt has surged by 15 percent this year to 29.3 billion crowns (€1.19 billion).
“If the country does not find a growth impulse and does not start to specifically address expensive housing and energy, Poland will eventually overtake the Czech Republic not only in income but also in quality of life,” warned Creditas Bank chief economist Petr Dufek.
A separate study by the National Institute SYRI highlighted the bleak outlook among the younger generation. Research author Veronika Tesařová said young people are afraid of economic instability, the climate crisis, and housing costs. “They do not believe that they will be better off than their parents,” she said.
One participant in the study summed up the prevailing sentiment: “By working honestly, we often fail to earn a decent living.”
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