GDP per capita in PPP: Latvia ranks third from the bottom 0

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GDP per capita in PPP: Latvia ranks third from the bottom
Photo: LETA

In 2025, GDP per capita in purchasing power parity varies significantly across Europe. Every third EU resident lives in a country where this indicator is above the Union average.

Gross Domestic Product (GDP) per capita in Purchasing Power Standards (PPS) is a widely used indicator for comparing national income levels, as it accounts for differences in price levels.

In 2025, GDP per capita in PPS varies significantly across Europe. With an average of 100 in the EU, it ranges from 68 in Bulgaria and Greece to 239 in Luxembourg, according to Eurostat. In Luxembourg, this figure is about 3.5 times higher than in Bulgaria and Greece. Latvia ranks a shameful third from the bottom with 71.

This means that after adjusting for price differences, the average EU resident can afford 100 units of a common basket of goods and services. In Bulgaria and Greece, one can afford about 68 such units, while in Luxembourg, it's about 239 units; Ireland has a nearly equally high level at 237 units.

These data show that Luxembourg and Ireland have substantially the highest GDP per capita - 139% and 137% above the EU average, respectively. In contrast, Bulgaria and Greece are 32% below the EU average.

Excluding these two outliers, the highest GDP per capita in PPS is boasted by the Netherlands at 134% of the EU average, followed by Denmark (127%) and Austria (117%).

Germany (115%), Belgium (115%), Sweden (110%), Malta (110%), and Finland (101%) are other countries with above-average levels compared to the EU.

Germany leads among the 'big four' in GDP per capita

Among the economies of the 'big four' EU countries, Germany has the highest GDP per capita in PPS - 115% of the EU average. It is the only country exceeding the 100% mark. France is close to the average at 98%, followed by Italy at 96%. Spain has the lowest figure among them at 92% of the EU average.

Eight countries lag more than 20% behind the EU average

In addition to Greece and Bulgaria, six other countries have GDP per capita in PPS at least 20% below the EU average. These are Latvia (71%), Slovakia (75%), Hungary (76%), Croatia (78%), Romania (79%), and Estonia (79%); figures are presented as percentages of the EU average.

Poland and Portugal are close to this level, with figures of 81% of the EU average.

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