According to the latest International Monetary Fund (IMF) survey, the Czech Republic is ahead of Spain and Italy in terms of GDP per capita. Although this result is affected by the coronavirus crisis, which has taken a severe toll on big economies, this metric is expected to remain in place even after the crisis ends.
The IMF also believes that within five years, Czechia will surpass New Zealand and Japan and reach 25th place in GDP per capita.
According to the IMF, gross domestic product per capita in the Czech Republic this year is 38,120 international dollars at constant prices and converted into purchasing power parity. The IMF converted salaries into international dollars as of 2017 to compare GDP per capita between countries.
“In Italy, according to the IMF, this year it is 37,905 and in Spain 36,086 international dollars of 2017,” said Trinity Bank chief economist and member of the National Economic Council of the Czech Government Lukáš Kovanda.
Kovanda explained that Czechia overtook Spain and Italy during the coronavirus crisis of the spring, when both southern countries were hit the hardest.
“The reason is the coronavirus crisis, which in the so-called first spring wave hit Italy and Spain particularly hard. Their economic downturn, including the decline in GDP per capita, was thus more pronounced than the decline of most other advanced economies, including the Czech Republic or Slovakia,” Kovanda told news server Echo24.
The curve shows that Czechia should continue to grow and eventually outgrow the economy of New Zealand and even Japan.
For example, for 2025, the IMF forecasts that the Czech economy will create 45,490 international dollars of 2017 per capita, which moves the Czech Republic two places up over Spain and Italy, which should create 42,809 in the case of Spain and 42,525 in Italy.
“According to the IMF, Czechia should occupy the 25th place in this order in 2025, when it will surpass New Zealand and Japan in terms of per capita wealth. According to the IMF, Slovakia will improve from last year’s 37th place to 36th place in 2027… However, in the years to come, Slovakia will remain not only behind Italy and Spain but also, for example, Portugal, Estonia, and Lithuania,” added the economist.