Gross domestic product per capita in purchasing power standards varies significantly across Europe in 2025. One in three people in the EU lives in a country where GDP per capita in PPS is above the EU average.
Gross domestic product (GDP) per capita in purchasing power standards (PPS) is a widely used measure to compare national income levels as it takes price level differences into account.
ADVERTISEMENT
ADVERTISEMENT
In 2025, GDP per capita in PPS varies significantly across Europe. With the EU average set at 100, it ranges from 68 in Bulgaria and Greece to 239 in Luxembourg according to Eurostat. It is about 3.5 times as high in Luxembourg as in Bulgaria and Greece.
This means that, after adjusting for price differences, the average person in the EU can afford 100 units of a common basket of goods and services. In Bulgaria and Greece, they can afford about 68 units whereas in Luxembourg they can afford about 239 units, closely followed by Ireland at 237 units.
These figures show that Luxembourg and Ireland have by far the highest GDP per capita at 139% and 137% above the EU average. In contrast, it is 32% below the EU average in Bulgaria and Greece.
Apart from these two outliers, Netherlands has the highest GDP per capita in PPS 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 above the EU average.
Germany tops the ‘Big Four’ in GDP per capita
Among the EU’s “Big Four” economies, Germany has the highest GDP per capita in PPS at 115% of the EU average. It is the only country above the 100% level. France is close to the EU average at 98%, followed by Italy at 96%. Spain has the lowest level among them at 92% of the EU average.
Eight countries below 20% of the EU average
In addition to Greece and Bulgaria, six further countries are at least 20% below the EU average in GDP per capita in PPS terms. These are Latvia (71%), Slovakia (75%), Hungary (76%), Croatia (78%), Romania (79%) and Estonia (79%), with figures shown as a percentage of the EU average.
This figure is also 81% of the EU average in Poland and Portugal, close to that level.
Luxembourg and Ireland do not reflect the full picture
However, Luxembourg and Ireland are specific cases. Eurostat notes that a large number of foreign workers are employed in Luxembourg and contribute to its GDP, but are not part of its resident population.
In Ireland, the high level of GDP per capita can be partly explained by the presence of large multinational companies holding intellectual property. Contract manufacturing linked to these assets adds to GDP, while a large share of the income generated is returned to the companies’ ultimate owners abroad.
EU GDP per capita averages €41,600 in PPS
In euro terms adjusted for PPS, the EU’s average GDP per capita stood at around €41,600 in 2025, based on preliminary data. Among the EU countries, it varies from €28,300 in Bulgaria to €99,300 in Luxembourg.
In addition to Luxembourg and Ireland, GDP per capita in PPS exceeds €50,000 in Netherlands (€55,600) and Denmark (€52,800).
In Germany, it is €47,900 while it is €40,700 in France. In 10 EU countries, GDP per capita is below €35,000 in PPS terms.
Eastern vs Western & Northern Europe
In general, Eastern European countries have the lowest GDP per capita in PPS, while Western and Northern EU members have the highest. Labour productivity, measured as output per worker or per hour worked, and employment intensity are important factors behind differences between countries according to Eurostat.
One in three EU citizens lives above the EU average
In 2025, just 10 of the EU’s 27 countries were above the EU average in GDP per capita in PPS terms. They represent around 34% of the total population. Overall, one in three EU citizens live in a country where GDP per capita in PPS was above the EU average. This indicates substantial differences across EU countries.
EU candidates have lower GDP per capita
EU candidate countries, the United Kingdom and European Free Trade Association countries are not included in the preliminary results. However, 2024 figures offer useful insights.
Candidate countries have significantly lower GDP per capita in PPS terms. It is 35% of the EU average in Bosnia and Herzegovina, 42% in Albania and North Macedonia, 52% in Serbia, 53% in Montenegro and 72% in Turkey. Except for Turkey, candidate countries have lower figures than EU members.
The UK (99%) is close to the EU average, while EFTA countries have significantly higher GDP per capita. It is 160% of the EU average in Norway, 151% in Switzerland and 131% in Iceland.
Actual individual consumption per capita in PPS is a key indicator of household material welfare and living standards. The gap is smaller in this measure than in GDP per capita in PPS.
