Netherlands ranks fourth in EU for GDP per capita in 2023

Luxembourg leads the EU rankings, primarily due to its large financial sector and the substantial number of non-resident workers contributing to its economy. Ireland follows, benefiting from the presence of numerous foreign multinationals, with Denmark and then the Netherlands trailing close behind. At the other end of the spectrum, Bulgaria records the lowest GDP per capita in the EU, at less than €15,000, which is more than two and a half times below the EU average.

Adjustments for price level differences across countries, as done by Eurostat, show that Bulgaria’s GDP per capita rises to about half that of the Netherlands, despite being roughly a quarter in nominal terms. This adjustment helps provide a more accurate comparison between nations, as per CBS.

The Netherlands has seen a rise in its standing when GDP per capita is adjusted for price differences, overtaking Denmark to claim the third spot. This is attributed to the relatively lower prices in the Netherlands compared to Denmark.

Further insights from the data reveal that actual individual consumption per capita in the Netherlands was nearly €30,000, accounting for 61 per cent of GDP. This compares to the EU average where individual consumption constitutes 65 per cent of GDP. Notably, countries with a significant presence of foreign enterprises, such as Luxembourg and Ireland, typically show a lower ratio of actual consumption to GDP. Luxembourg, although leading in GDP per capita, shows a narrowing lead in terms of consumption per capita, while Ireland has dropped to seventh place in the EU.

The report also highlights Austria’s performance when adjusting for price level differences. Although it ranks fifth based on GDP per capita, Austria climbs to second place in terms of actual individual consumption per capita within the EU.

Fibre2Fashion News Desk (DP)