With GDP at 83 percent of the average, the price level in the Czech Republic rose to 66 percent of the euro area average last year from 64 percent in 2016, according to the Ministry of Finance. “In the coming years, the comparative price level of GDP should gradually increase to 70 percent in 2019. However, this increase should not jeopardize the competitiveness of the Czech economy,” the ministry said.
The economic level of the countries are compared on the basis of the purchasing power parity. This is the ratio between currencies that express the ability to buy the same set of goods or services in both countries. The price level index is the share of the exchange rate and the purchasing power parity between currencies.
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