Luxembourg leads EU in per capita GDP

(CN) — Luxembourg and Irelend led the European Union in gross domestic product per capita in 2024, according to preliminary estimates released Thursday by Eurostat.

Eight other countries exceeded the EU average, which is expressed as 100 purchasing power standards (PPS). PPS is a term used for an imaginary common currency that can be spent in each country to purchase the same goods and services, albeit at different prices.

Last year, Luxembourg recorded 241 PPS, or a per capita GDP 141% above the EU average. The World Bank frequently lists Luxembourg as one of the highest per capita GDPs in the world behind Monaco and Liechtenstein, neither of which are members of the EU.

“The high GDP per capita in Luxembourg is partly due to the country’s large share of cross-border workers in total employment. While contributing to the GDP, these workers are not taken into consideration as part of the resident population which is used to calculate GDP per capita,” Eurostat said in the report.

Ireland came in at number 2, recording 211 PPS in 2024 according to Eurostat — 111% above the EU average. The report noted Ireland’s luck can be partially attributed to large multinational companies holding intellectual property in the country.

“The associated contract manufacturing with these assets contributes to the GDP, while a large part of the income earned from this production is returned to the companies’ ultimate owners abroad,” Eurostat reported.

Other countries beating the average included Netherlands (135 PPS), Denmark (128 PPS), Belgium (117 PPS), Germany and Austria (115 PPS), Sweden (114 PPS), Malta (109 PPS), and Finland (103 PPS). About 34% of the EU’s 449 million people live in countries with above average per capita GDP.

On the other end of the spectrum, Bulgaria lagged behind all other countries in the EU with a per capita GDP of just 66 PPS. Also low on the list was Greece (70 PPS), Latvia (71 PPS), Slovakia (75 PPS), Hungary and Croatia (77 PPS), and Romania, Poland and Estonia (all with 79 PPS).

France, Italy, Cyprus, Spain, Czechia and Slovenia fell less than 10% below the average, followed by Lithuania and Portugal at 10% to 20% below.

Separately on Thursday, Eurostat announced an annual trade surplus of $158 billion (147 billion euros) in 2024, an increase of $121 billion (113 billion euros) since 2023. The EU has recorded surpluses every year for the last decade except 2022, when energy prices spiked. The chemicals industry and related products have led the surplus over the past 10 years, followed by food and drink, machinery and vehicles.

The United States was the largest destination for European exports last year, capturing a share of 20.6%. They were followed by the United Kingdom (13.2%) and China (8.3%). China was also the largest country of origin for imports into the EU in 2024, according to the report, with the United States and U.K. ranking second and third, respectively.

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