Among OECD countries, Czechia’s labor productivity growth holds the 10th place, propelled by advancements in infrastructure and capital investment. Although the lowest in the Visegrád Group, Czechia outpaced Germany, France, and the UK, as per Lensa’s study. From 1995 to 2021, its labor productivity, gauged by GDP growth per hour worked, increased by around 2.6%. The top performers were Latvia, Ireland, and Lithuania. Foreign investments and industrialization fueled this improvement. Despite a productivity dip due to Covid-19 in 2020, a resurgence was noted in 2021. Eurostat data of Q1 2023 shows a rise to 107.3 points (EU average being 100). Moreover, Czechia’s per capita labor productivity is among the top 35 globally, according to World Population Review. The Economist Intelligence Unit projects a 2.3% productivity growth from 2022 to 2030, despite anticipated challenges from a static working-age population and a slowdown in capital expenditure.
Source: expats.cz
