The European Union, rich or poor? (New statistics regarding) Regional GDP per inhabitant in the EU27

www.europa.eu ^ | 02/19/2007 | www.europa.eu

[WesternCulture]

Well, are the inhabitants of the EU prosperous or not?

Yes and no.

Many Europeans (and Americans as well) would say the US is part poor, part affluent, arguing that wealth is distributed in a very uneven way in that country.

However, regarding regional GDP/capita, there probably are even greater differences between the EU citizens than between US Americans (regardless of the reasons to this situation)!

For instance, according to the study, Inner London is more than 36 times richer than North Eastern Romania!

The article:

"Regional GDP per inhabitant in the EU27

GDP per inhabitant in 2004 ranged from 24% of the EU27 average in Nord-Est in Romania to 303% in Inner London

GDP per inhabitant in 2004 ranged from 24% of the EU27 average in Nord-Est in Romania to 303% in Inner London

In 2004, GDP per inhabitant1, expressed in terms of purchasing power standards2, in the EU27's 268 NUTS-23 regions ranged from 24% of the EU27 average in the region of Nord-Est in Romania, to 303% of the average in Inner London in the United Kingdom.

This information is taken from data released by Eurostat, the Statistical Office of the European Communities.

One region in six above 125% of the EU27 average...

The three leading regions in the ranking of regional GDP per inhabitant in 2004 were Inner London in the United Kingdom (303% of the average), the Grand Duchy of Luxembourg (251%) and Bruxelles/Brussels in Belgium (248%). Among the 46 regions exceeding the 125% level, eight each were in Germany and the United Kingdom, seven in Italy, five in the Netherlands, four in Austria, three each in Belgium and Spain, two in Finland, one region each in the Czech Republic, Ireland, France, Slovakia and Sweden, and the Grand Duchy of Luxembourg.

It should be noted, however, that in some regions the GDP per inhabitant figures can be significantly influenced by commuter flows. Net commuter inflows in these regions push up production to a level that could not be achieved by the resident active population on its own. The result is that GDP per inhabitant can be overestimated in these regions and underestimated in regions with commuter outflows.

...and one in four below 75%

The fifteen lowest regions in the ranking were all in Bulgaria, Poland and Romania, with the lowest figures recorded in Nord-Est in Romania (24% of the average), followed by Severozapaden, Yuzhen tsentralen and Severen tsentralen in Bulgaria (all 26%). Among the 70 regions below the 75% level, fifteen were in Poland, eight each in Greece and Romania, seven in the Czech Republic, six each in Bulgaria and Hungary, four each in France (all overseas departments), Italy and Portugal, three in Slovakia, one region in Spain, and Estonia, Latvia, Lithuania and Malta.

Regional GDP per inhabitant in the EU27 in 2004 (in PPS, EU27 = 100)

The fifteen highest: The fifteen lowest: 1 Inner London (UK) 303 1 Nord-Est (RO) 24 2 Luxembourg (LU) 251 2 Severozapaden (BG) 26 3 Bruxelles-Cap. / Brussels Hfdst. (BE) 248 3 Yuzhen tsentralen (BG) 26 4 Hamburg (DE) 195 4 Severen tsentralen (BG) 26 5 Wien (AT) 180 5 Sud-Muntenia (RO) 28 6 Île de France (FR) 175 6 Sud-Vest Oltenia (RO) 29 7 Berkshire, Buckinghamshire & Oxfordshire (UK) 174 7 Severoiztochen (BG) 29 8 Oberbayern (DE) 169 8 Yugoiztochen (BG) 30 9 Stockholm (SE) 166 9 Sud-Est (RO) 31 10 Utrecht (NL) 158 10 Nord-Vest (RO) 33 11 Darmstadt (DE) 157 11 Lubelskie (PL) 35 12 Praha (CZ) 157 12 Podkarpackie (PL) 35 13 Southern & Eastern (IE) 157 13 Centru (RO) 35 14 Bremen (DE) 156 14 Podlaskie (PL) 38 15 North Eastern Scotland (UK) 154 15 Vest (RO) 39

GDP, and thus GDP per inhabitant, provides a measure of the total economic activity in a region. It may be used to compare the degree of economic development of regions. GDP does not measure the income ultimately available to private households in a region. Details of the methodology used can be found in "Regional Accounts Methods: gross value added and gross fixed capital formation by activity", Eurostat, 1995, ISBN 92-827-0159-X. The PPS (purchasing power standard) is an artificial currency that takes into account differences in national price levels. This unit allows meaningful volume comparisons of economic indicators over countries. Aggregates expressed in PPS are derived by dividing aggregates in current prices and national currency by the respective Purchasing Power Parity (PPP). These data are based on the Nomenclature of Territorial Units for Statistics adopted in May 2003. NUTS 2003 provides a uniform, consistent breakdown of territorial units for the production of regional statistics for the EU. Level 2 of the nomenclature has 268 regions: Belgium (11), Bulgaria (6), the Czech Republic (8), Germany (41), Ireland (2), Greece (13), Spain (19), France (26), Italy (21), Hungary (7), the Netherlands (12), Austria (9), Poland (16), Portugal (7), Romania (8), Slovakia (4), Finland (5), Sweden (8) and the United Kingdom (37). Denmark, Estonia, Cyprus, Latvia, Lithuania, Luxembourg, Malta and Slovenia are all considered as single regions at NUTS 2 level."

- For the full article click above, or below (on the link)

[WesternCulture]

For the full article:

http://europa.eu/rapid/pressReleasesAction.do?reference=STAT/07/23&format=HTML&aged=0&language=EN&guiLanguage=en

[avacado]

Interesting article. I read some research by the Swedes and they found out that people of Sweden have a standard of living only higher than 3 states in the USA.

[Atlantic Bridge]

Ping!

[Patrick1]

Two things we know about Europe for sure. They are morally bankrupt and they are literally dying out.

[The Pack Knight]

By any reasonable standard, the average American living below the poverty line enjoys a better standard of living than the average European of all economic strata. That includes residential square-footage, access to transportation, and possession of consumer goods. If I had more time I'd dig up the numbers.

Don't tell any college professors, but our way of doing things is simply superior to theirs. End of story.

[Alter Kaker]

I'm shocked, shocked that rural Romania is poorer than Knightsbridge and Mayfair, London.

When I'm done having my heart attack, remind me why this is a surprise? Next, we'll be hearing that Paris' wealthy 16th Arrondisement is in fact, richer than Plonsk, Poland. The horror!

[Jumper]

American's have more disposable cash after taxes and basic needs. Imagine Americans being happy to be taxed at 50-70% at payroll and then suffer another 20% Value Added Tax, plus the double cost of Gas (I'm sure we would all feel better knowing we have "free" health care and 65-80% unimployment benefits...). Socialism has not given EUropens a consumer economy and therefore, the US is much better off.

[Robert A Cook PE]

Yes, but notice that when "happiness" is judged, European "happiness/quality-of-life" issues are ALWAYS rated higher BECAUSE the judging criteria weights 'socially subsidized retirement" and "government health care" as priorities, as highly weighted items.

So, the terrible European tax burdens are discounted - if it is counted at all as a "dissatisfaction" and the "value" of government health care is overrated by the people ruining (er, running) the study..

[Pete98]

Yup. I work for an international computer company. Back in 2003 we had some visitors come over from the Netherlands for business - they work in a different division of our company.

I invited them to my house for dinner - my house is only 2400 square feet, but they told me, and I quote: "In Holland you'd have to be a millionaire to have a house like this."

[Nat Turner]

By any reasonable standard, the average American living below the poverty line enjoys a better standard of living than the average European of all economic strata. That includes residential square-footage, access to transportation, and possession of consumer goods. If I had more time I'd dig up the numbers.

Try this:

http://www.heritage.org/Research/Budget/bg1979.cfm

[jveritas]

The richest countries in Europe have standards of living that are equivalent or less than the standards of living in the bottom 5 states in the US. There is no comparison between Americans and Europeans when it comes to standards of living, Americans have it much better it is as simple as that. The reasons for this are very simple. On average Americans make more money than Europeans, they pay less taxes than Europeans, and almost everything in the US is less expensive and in most cases much less expensive than that in Europe, therefore Americans have much better standards of living than Europeans.

[jveritas]

Exactly correct. The same goes for, Germany, Italy, Great Britain, France, and all of Western EU (Eastern EU is too poor to even compare). All these Western EU countries have standards of living equivalent or less than the standards of living in bottom 5 states in the US.

[jveritas]

Excellent post, also the purchasing power in the US is much better than in EU because the vast majority of goods are less expensive in the US than in Europe.

[jveritas]

Excellent post, also the purchasing power in the US is much better than in EU because the vast majority of goods are less expensive in the US than in Europe.

[Reeses]

The finer details are subjective but US outranks Germany, UK, France in "happiness": First Ever World Map of Happiness Produced

The US is a large country with all kinds of people living here so the normal deviation from the average is much larger than a small country. Some have it great and some are caught in a socialist force field.

Happiness never comes from comparing oneself to others. Envy is the source of most unhappiness. The leftist media churns up most of the unhappiness in American and constantly plays down America's greatness.

[sitetest]

Dear Pete98,

Conversely, when my parents visited my mother's cousins in Milan, Italy, they were shocked at what passes for a middle class home there. As well, they were taken aback by what folks ate as typical meals.

When my brother lived in Japan, he lived in an apartment complex called "Executive Gardens," which was aimed at upper middle, and upper management types. Their three bedroom apartment was all of 1100 sq ft. My brother was provided with a "luxury" car that had a 1.6L or 2.0L four cylinder engine. When they would dine out, they'd all order two entrees each.


sitetest

[avacado]

Here's the report you and I are talking about: "EU vs USA"

THIS REPORT IS ABOUT THE FACT that per capita GDP is lower in most of the countries of Europe than in most of the states of the USA. That France, Italy and Germany have less per capita GDP than all but five of the states of the USA is probably something that messrs Chirac, Schröder and Berlusconi don’t wish to know.

The US recession, with GDP growth rates of 1 or 2 per cent, represents almost boom conditions in Germany, ...

[jveritas]

Thanks for the link. I read parts of this report before, it is great and very realistic. It does not have the delusional socialist views of US Vs. EU that we hear from the socialist intellectuals and the liberal media.

[Nat Turner]

It does not have the delusional socialist views of US Vs. EU that we hear from the socialist intellectuals and the liberal media.

I thought the socialist intellectuals WERE the liberal media