Prague - Economy

Economy

Prague's economy accounts for 25% of the Czech Republic's GDP making it the highest performing regional economy of the country. According to the Eurostat, as of 2007, its GDP per capita in purchasing power standard is 42,800 €. Prague ranked the 5th best-performing European NUTS two-level region at 172 percent of the EU-27 average.

The city is the site of the European headquarters of many international companies.

Since 1990, the city's economic structure has shifted from industrial to service-oriented. Industry is present in sectors such as pharmaceuticals, printing, food processing, manufacture of transport equipment, computer technology and electrical engineering. In services sector, most significant are financial services, commercial services, trade, restaurants and accommodations and public administration. Services account for around 80 percent of employment. There are 800,000 employees in Prague, including 120,000 commuters. The number of (legally registered) foreign residents in Prague has been increasing in spite of the country's economic downturn. As of March 2010, 148,035 foreign workers were reported to be living in the city making up about 18 percent of the workforce, up from 131,132 in 2008. Approximately one-fifth of all investment in the Czech Republic takes place in the city.

Almost one-half of the national income from tourism is spent in Prague. The city offers approximately 73,000 beds in accommodation facilities, most of which were built after 1990, including almost 51,000 beds in hotels and boarding houses.

From the late 1990s to late 2000s, the city was a popular filming location for international productions and Hollywood, Bollywood motion pictures. A combination of architecture, low costs and the existing motion picture infrastructure have proven attractive to international film production companies.

The modern economy of Prague is largely service and export-based and, in a 2010 survey, the city was named the best city in East Europe for business.

In 2005, Prague was deemed among the three best cities in eastern Europe according to The Economist's livability rankings. The city was named as a top-tier nexus city for innovation across multiple sectors of the global innovation economy, placing 29th globally out of 289 cities, ahead of Brussels and Helsinki for innovation in 2010 in 2thinknow annual analysts Innovation Cities Index. The street Na Příkopě in New Town is the most expensive in whole Central Europe.

In the Eurostat research, Prague ranked fifth among Europe's 271 regions in terms of gross domestic product per inhabitant, achieving 172 percent of the EU average. It ranked just above Paris and well above the Czech Republic as a whole, which achieved 80 percent of the EU average.

Prague is also the site of some of the most important offices and institutions of the Czech Republic.

• President of the Czech Republic
• The Government and both houses of Parliament
• Ministries and other national offices (Industrial Property Office, Czech Statistical Office, National Security Authority etc.)
• Czech National Bank
• Czech Television and other major broadcasters
• Radio Free Europe – Radio Liberty
• Galileo global navigation project
• Academy of Sciences of the Czech Republic