
Czechia Surpasses Germany in Macroeconomic Stability – What Does it Mean
Czechia now has the strongest economy in Central Europe, performing better than Germany in several key areas, including debt, inflation, and wage growth. While public attention has often focused on disagreements over government reforms, the actual results are clear. The Czech economy is recovering well and moving ahead of its neighbors. New data from Eurostat shows that Czechia has the lowest public budget deficit in the region — just 2.2% of GDP. Germany comes next with 2.8%. At the same time, Czech public investment is at a record 4.7%, higher than Germany (2.9%) and just behind Poland (4.9%). This strong position is the result of the government’s decision not to overspend during the COVID and energy crises. Unlike Slovakia, Hungary, and Poland, which offered big subsidies and price caps, Czechia took a more careful path. While this was criticized at the time, it has led to better long-term results. Inflation and Debt Under Control Czechia also now has the lowest inflation and lowest public debt in the region. Inflation fell sharply in April due to several short-term reasons, but overall, prices are more stable here than in neighboring countries, where high government spending is still pushing inflation up. Real wages... The post Czechia Surpasses Germany in Macroeconomic Stability – What Does it Mean appeared first on Prague Morning .