Last year, Luxembourg and Ireland were again at the top of an EU ranking in terms of GDP per capita measured by purchasing power standards, and Croatia was again in the company of Latvia, having slightly reduced the gap in relation to the EU average, a preliminary estimate by Eurostat shows.

Luxembourg’s GDP per capita was again more than two and a half times higher than the EU average in 2022.

This is to some extent explained by the fact that a large number of foreign residents are employed in the country and thus contribute to its GDP, while they are not part of Luxembourg’s resident population. Their consumption expenditure is recorded in the national accounts of their country of residence, Eurostat says.

Malta, France closest to average

Ireland ranks second with GDP per capita almost two and a half times higher than the EU average.

The high level of GDP per capita in Ireland can be partly explained by the presence of large multinational companies holding intellectual property. The associated contract manufacturing with these assets contributes to GDP, while a large part of the income earned from this production is returned to the companies’ ultimate owners abroad, Eurostat says.

Denmark and the Netherlands follow, with GDP per capita of 36% and 30% above the EU average.

Close to them is Austria, with GDP per capita of 25% above the EU average, and Belgium and Sweden, whose GDP per capita is around one-fifth above the EU average.

Germany’s GDP per capita is 17% above the EU average while GDP per capita in France and Malta is close to the average of the 20-member euro area, which is 4% higher than the 27EU average.

Italy’s GDP per capita in 2022 was 4% below the EU average while GDP per capita in Slovenia and Cyprus was 8% below the EU average.

GDP per capita in Romania, Portugal and Hungary is 23% below the EU average, while in Poland, it is 21% below the EU average.

Improvement in Croatia

In 2022, Croatia saw an improvement compared to the year before, with its GDP per capita being 27% below the EU average as against 30% below the average in 2021.

Latvia was closest to Croatia, with GDP per capita of 26% below the EU average.

Bulgaria had GDP per capita of 41% below the EU average, which put it at the bottom of the ranking. Apart from Bulgaria, Slovakia and Greece were the only other countries whose GDP per capita was lower than that of Croatia, of one-third below the EU average.