D. Economy

City’s economy

In terms of regional economic performance, the Capital City of Prague has a unique position within the whole Czech Republic. Prague’s Region generates more than a quarter of the national GDP. In calculation of GDP per one inhabitant in purchasing power parity, Prague exceeded the average of the European Union (EU27) by more than 72 %.

Fig. D1.1 : Gross domestic product per capita [thous. CZK]

Source: ČSÚ

Fig. D1.2 : Registered unemployment rate

Source: ČSÚ

Prague’s economy is dominated by the service sector (82 %), while the industry has a much smaller share of output of GDP and working positions than in the rest of the Czech Republic. The labor market situation in Prague is in the long-term better than in other regions. In Prague in 2011 the general rate of unemployment was 3.6 %, while in the Czech Republic 7.3 %. Classification of labour power and average wages are also higher here.

Table D1.1 : Employment and wages, unemployment

Jednotka200520062007200820092010 2011
Rate of economic activity % 62,0 62,061,861,462,662,3 61,4
Employees in the NE in total (VŠPS) thous. people 615,2 627,2632,4645,6660,0656,8 650,3
  out of that according to position - entrepreneurs 4) thous. people 128,4 135,4132,8135,9146,4151,1 151,6
Average number of employees 3) thous. people, recalculated people 725,8 736,9768,8832,5771,7775,0 763,3 3)
Average gross monthly nominal wage CZK 23 552 25 17526 89628 83030 02830 913 33 546
Vacant positions positions 11 119 16 19228 74625 0028 5085 743 7 465
Applicants without position people 24 571 21 36417 36317 43329 86533 433 32 580
  out of that women people 13 011 11 3439 1938 94014 49116 669 16 326
Available applicants people 22 520 19 60315 81316 14328 94732 123 31 019
Applicants on unemployment benefit people 9 392 8 5207 2688 51812 66111 754 9 226
Rate of registered unemployment % 3,25 2,722,162,143,664,07 3,95
Applicants per 1 vacant position 2,2 1,30,60,73,55,8 4,4

Source: ČSÚ

1) State as of the latest day of the period monitored, data source MoLSA.
2) Share of employed and unemployed (workforce) of the number of all people 15+ years of age (Labour Force Survey, LFS).
3) Data for the entire national economy according to workplace method, preliminary data for 2010 and 2011.
4) Including helping family members according to the methodology Labour Force Survey (Labour Force Survey, LFS).


Fig. D2.1 : Development of consumption of electricity

Source: Pražská energetika, a. s. (till 2005), PREdistribuce, a. s. (since 2006)

The consumption of fuel and energy in Prague serving for purposes of heating and the hot water production recorded a decreasing trend in the last two decades. On the contrary, the electricity consumption has been continually increasing. The reduction of the consumption of fuel burnt on the territory of Prague for heating and hot water purposes was mostly affected by the decommissioning of many industrial companies. The expanding gasification of boiler-rooms, where obsolete boilers for solid and liquid fuel were replaced by natural gas boilers with higher combustion efficiency, also significantly contributed to the consumption reduction. The use of heat from power plant Mělník I. has a significant influence, which allowed to shut down many local boiler-rooms.

Fig. D2.2 : Development of consumption of natural gas

Source: Pražská plynárenská, a. s. (till 2006), PPdistribuce, a. s. (since 2007)

Fig. D2.3 : Development of consumption of heat

Source: Pražská teplárenská, a. s.


The programme has been running since 1994. The aim of provided grants is a motivational effect on the owners or tenants of the apartments to transform the original heating systems (especially the ones for solid fuel) for environmentally friendly heating mediums and utilization of renewable energy sources. The total amount of the grants in 2011 amounted to CZK 16,494,160 (286 supported applications for 653 flats, of which fuel gas – 494, the heat pump – 78, photovoltaics – 9, solar collectors – 64 and biomass – 5 flats). The programme, along with other programmes for air recovery, contributes to the decline of the emissions of pollutants on the territory of the Capital City of Prague.

Fig. D2.4 : Structure of subsidies drawing - Clean Energy Prague 2011

Source: RVP MHMP



Individual transport is a factor significantly affecting the quality of the environment in the Capital City of Prague. Prague supports efforts to minimize the negative impacts of transport, but this is counterbalanced by the continuing increase in the use of personal cars in Prague. An important fact is that in 2011 was for the first time since 1990 recorded an annual decrease of transport performance of road transport (by 1 %) despite an increase in the number of registered vehicles. Transport performance of road traffic compared to 2009 increased by about 4 %. Number of vehicles registered between 1990 and 2010 rose to more than double, transport performance to three times and traffic volume on particular sections of the road network according to location normally up to two to four times. Overloading the communication network has already an areal character; the whole area of the city centre as well as the adjacent middle zone of size 7 x 6 km may be considered overloaded. The main cause is the use of a car for everyday purposes by many citizens and decrease in the average of passenger occupancy of personal vehicles. High volumes of road traffic bring with them a wide range of connections significantly affecting the life of the city inhabitants.

Fig. D3.1 : Automotive transport performance
per average working day

Source: TSK - ÚDI

Fig. D3.2 : Road traffic intensity
on the selected road network, 2011

Source: TSK - ÚDI

Fig. D3.3 : Structure of traffic flow - the central cordon, 2011

Source: TSK - ÚDI

The City has the goal to head towards a modern, effective, and reliably working transport infrastructure, that is friendly to people and the environment. The City supports reducing fuel and energy consumption in transport, reducing the impal on air quality (including the use of CNG vehicles and electromobility support), noise pollution and, within the economic possibilities, promotes bicycle and pedestrian traffic.

One of priorities is the construction of the superior transport skeleton of the City – radial and ring roads system of the main road network. In 2011 southern branch of Štěrboholská radial road in the area of future crossing with the City Circle was put into service. The total length of road network in Prague in 2010 was about 3,900 km. Out of the main communication network, which will in its final state reach a length of 210 km, 88 km are in operation.


Fig. D3.4 : Public City Transport – passengers per year [mil. people]

Source: TSK - ÚDI

The public transport in the Capital City and its region is provided by the Prague Integrated Transport (PID), which includes metro, tram lines, urban and suburban buses, railways, cableway to Petřín and ferries. The public transport transported in 2011 1.180 billion people (annual decrease of 2%). Most people per year were transported by metro – 530 mil., followed by trams – 311 mil., buses – 267 mil. people, railways within PID document – 18 mil. and ferries – 641,000 people.

Promotion of bicycle transport and creating the necessary infrastructure on the territory of Prague is a part of the development plan of the City. The main objective in 2010 of the Concept of development of bicycle transport in Prague till 2020 is to increase the proportion of cycling up to 5% in 2020, which should be achieved through a combination of appropriate measures.

At the end of 2011 over 500 km of bicycle routes were marked by directional marking. Out of the entire network of bicycle routes, more than 200 km enjoyed the character of protected nature trails and nearly 70 km benefited from integration measures. In 2011, building bicycle paths was implemented along the Floating channel in Bubeneč (A1), south of Sedlec (A1) and between Troja and Bohnice (A273), further the bicycle route along the former Vítkov railway line (A25) was put into operation, more than 60 km of bicycle routes were marked, almost 3 km of bicycle lanes and more than 4 km of bicycle picto-corridors, there was introduced free transport of bicycles in Prague and also on railway, etc.

Fig. D3.5 : Network of bicycle routes on the territory of Prague, 2011

Source: ÚRM, MHMP

Also safe pedestrian traffic is supported. Attention in 2011 was especially paid to increasing the safety of pedestrián traffic in places of conflict with other modes of transport, particularly with automotive transport, revitalizing of parks and other recreational areas, eventually the construction and reconstruction of routes for walking (sidewalks, paths). General Plan for Pedestrial Transport was semi-finished in 2011.