Dutch GDP per capita in fourth place in the EU in 2023

Luxembourg has the highest GDP per capita within the European Union. This is due to the relatively large number of financial institutions in the country, and because many people work in Luxembourg but do not live there. In second place is Ireland, where many foreign multinationals are also located, followed by Denmark and the Netherlands. Bulgaria has almost 15 thousand euro has the lowest GDP per capita in the European Union. This is more than two and a half times lower than the EU average.

The Netherlands rises one spot after correction for differences in price levels

The differences in price levels between countries can be considerable. For example, you can buy less goods in the Netherlands with 1 euro than in Bulgaria. To better compare GDP per capita between countries, Eurostat corrects for price differences between countries. The GDP per capita in Bulgaria is about a quarter of that of the Netherlands. After correction for the price level, the GDP per capita of Bulgaria is approximately half of the GDP per capita of the Netherlands.

The Netherlands moves up one spot in the rankings for GDP per capita adjusted for price levels to third place. The price level in the Netherlands is lower than in Denmark, causing the Netherlands to surpass Denmark.

Share of individual consumption in the Netherlands lower than EU

Another measure of material prosperity in a country is actual individual consumption per capita, also corrected for price levels. This consists of household consumption expenditure, consumption by non-profit institutions serving households and individual consumption by government. Actual individual consumption in the Netherlands is almost 30 thousand euro, or 61 percent of GDP. This puts the Netherlands in fourth place. The average in the EU is 65 percent.

In Luxembourg and Ireland, real individual consumption as a share of GDP is low. Countries with many (foreign) companies generally have a lower share of real consumption per capita in GDP. Luxembourg remains first in the rankings, but the difference with other countries is smaller. Ireland drops to seventh place. Based on actual individual consumption per capita, adjusted for price levels, Austria ranks second in the EU, while based on GDP per capita it ranks fifth.