The economic differences between individual regions are deepening instead of being compared. In recent years, strong pre-epidemic economic growth has increased. One economy of Prague and the Central Bohemian Region grew 2.5 times between 1996 and 2019, the Karlovy Vary region is at the same level as before the fourth century. This resulted from studies on discrimination in the Czech labor market in a socio-economic context.
The results of studies focusing on macroeconomic development in regions and sectors were presented at conferences by the Dean of the Faculty of Informatics and Statistics of the University of Economics, Jakub Fischer, at conferences of the Association of Independent Departments in Prague.
The study also looked at the differences in remuneration, and then analyzed them in detail in the Karlovy Vary region. It compared the development of the regional gross domestic product (GDP) between 1996 and 2019.
The Czech economy grew by about 80 percent over the period under constant expectations, Fischer said. Prague and the Central Bohemian Region improved 2.5 times. The economy of the hands of the regions has risen 1.5 to two times. Performance Moravian-Silesian and the Ústí nad Labem Region increase according to the data about 0.5 times.
“The Karlovy Vary region, which was already the weakest at the time, is economical in 2019 at the level of 1996. Where one of the smallest politicians recently compared the Ústí nad Labem region economically to Romania – and was then a bit sandblasted, then it must be said that the Karlovy Vary region in terms of GDP per capita is completely safe for Romania. There are significant regional divergences, despite all the support funds that are drawn from the EU for convergence, for example, “said Fischer.
The Ústí nad Labem region has recently been economically compared to Romania by the electoral leader of the coalition of Pirates and Mayors in this region and the head of the Pirates, Ivan Bartoš. Prime Minister Andrej Babiš (ANO) said about the Karlovy Vary region some time ago that it is “the worst historically in everything”.
From 2014 to 2019, the Czechia experienced a strong boom. According to the results, the gap between the strongest and weakest regions widened rapidly. “Continue with a markedly regional divergence with the time bomb of the Karlovy Vary and possibly the Ústí nad Labem regions,” Fischer said.
According to studies, wages in the Karlovy Vary region are gradually approaching the national risk. The gap in women’s and men’s earnings is not as significant as in other regions. However, the difference in the remuneration of university students and people with a high school diploma is much lower in the Karlovy Vary region than in the risk in the Czech Republic.
“It can lead to an outflow of the more educated to other regions or abroad,” Fischer said. He added that if people with a university degree earn more elsewhere, they have no motivation to stay in the region.