Analysis: EU membership boosts Czech economy but increases exposure to global risks

EU membership has significantly boosted growth and modernization in Czechia, but also increased its vulnerability to external shocks, according to an analysis by financial firm XTB presented on Thursday.

The Czech and Slovak economies have grown closer to the EU average since joining in 2004, particularly in GDP per capita. However, their heavy reliance on industry and Russian energy made them more susceptible to the post-2020 crisis.

XTB notes the gap between the EU and US economies has widened, with the EU’s share of global GDP falling from 28% in 1991 to under 18% today, while the U.S. remains steady at around 26%.