Czechia has been named the sixth-best performing economy in the world this year, according to a new ranking released by The Economist. This marks a major leap from 18th place in 2024 and reflects the country’s most impressive economic showing in over ten years.

The British weekly evaluated 36 advanced economies based on GDP growth, inflation control, employment strength, and stock-market performance. The report highlights that Czechia has outpaced nearly all European countries in navigating inflation and global economic pressures.

Czechia currently records an estimated 2.8% GDP growth, supported by high employment and stable inflation levels, which sit just 1.4 percentage points above the Czech National Bank’s target. One of the standout indicators is the country’s stock market: the Prague Stock Exchange (PSE) posted a remarkable 46% year-on-year rise, the third-highest increase among all countries included. The PX index alone jumped 41.6% between January and November.

Despite the strong performance, analysts point to ongoing challenges, including a manufacturing-heavy economy, high energy costs, slow investment, tight labor availability, and worsening housing affordability. The country’s growth also remains closely tied to Germany, its largest trading partner, whose recent economic struggles could dampen Czechia’s future performance.

Globally, the ranking was topped by Portugal, followed by Ireland, Israel, Colombia, and Spain. Major economies like the U.S. and U.K. landed in mid-table due to high inflation and weaker labor market momentum. The Economist notes that, overall, the world economy performed better than expected, with projected global GDP growth of 3% in 2025.