Europe's GDP-Per-Capita: A Country-by-Country Analysis

Overview

Europe, known for its robust and sophisticated economies, offers a diverse landscape when it comes to per capita productivity. This article presents a detailed visualization of Europe’s GDP per capita across its 44 nations, as depicted by Visual Capitalist's Pallavi Rao. The data used for this analysis has been sourced from the International Monetary Fund (IMF) through their DataMapper tool and was last updated in April 2024.

Europe’s Wealth Distribution: From Richest to Poorest Nations

Leading the pack of Europe’s wealthiest nations in terms of GDP per capita are Luxembourg, Ireland, and Switzerland, each boasting figures above $100,000. Following them are three Nordic countries - Norway, Iceland, and Denmark, with GDP per capita ranging between $70,000 and $90,000. Sweden and Finland, also Nordic nations, fall just outside the top 10, with GDP per capita between $55,000 and $60,000. Germany, the UK, and France, despite being Europe’s largest economies in absolute terms, rank closer to the middle of the top 20, with GDP per capita around $50,000. On the other end of the spectrum, Eastern European countries generally have much lower per capita GDPs, with Ukraine ranking last at $5,660.

A Deeper Dive into Ukraine's Economy

When compared globally, Ukraine’s per capita GDP is on par with countries like Iran, El Salvador, and Guatemala. Despite expectations, Ukraine’s economy has historically underperformed. Following the fall of the Berlin Wall, the economy contracted for five consecutive years. Its transition to a liberalized economic structure was marred by widespread corruption, a limited tax pool, and scarce revenue sources. The country's political transformation from an authoritarian regime to a civil democracy has also been challenging, particularly in terms of institution building. The 2022 invasion led to a 30% contraction in Ukraine’s GDP in a single year - the largest loss since its independence. The emigration of six million refugees has also had a significant impact. However, despite these challenges, Ukraine’s economic growth has somewhat stabilized amidst ongoing conflicts.

Conclusion

Europe's economic landscape is as diverse as its cultural heritage, with countries like Luxembourg, Ireland, and Switzerland leading in terms of GDP per capita, while others, like Ukraine, struggle at the other end of the spectrum. What are your thoughts on this economic disparity within Europe? Do you think the wealthier nations have a role to play in supporting their less affluent neighbors? Share your thoughts and this article with your friends. Don't forget to sign up for the Daily Briefing, which is delivered to your inbox every day at 6pm.