In 2021, Luxembourg recorded the highest level of gross domestic product (GDP) per capita in the EU, followed by Ireland.

The two countries were, respectively, 177% and 121% above the EU average.

The latest Eurostat flash estimates express the GDP figures in purchasing power standards (PPS), in order to take account of differences in price levels among EU countries.

The data show substantial differences between the EU member states in terms of GDP per capita, which is used to measure economic activity. 

Eurostat says that Luxembourg’s high figure is, to some extent, explained by the fact that a large number of foreign residents are employed in the country, and contribute to its GDP, while they are not part of Luxembourg’s resident population. 

Intellectual property

It adds that Ireland’s high level of GDP per capita can be partly explained by the presence of large multi-national companies holding intellectual property. 

In 2021, the leaders were followed at a distance by Denmark (33% above the EU average), the Netherlands (32% above), Sweden (23% above) and Belgium (22% above).

In contrast, Croatia (30% below the EU average), Slovakia (32% below), Greece (35% below), and Bulgaria (45% below) registered the lowest GDP per capita.