Romania’s GDP per capita at PPP up 4pp y/y to 78% of EU average in 2023

Romania’s gross domestic product (GDP) per capita, adjusted for purchasing power parity (PPP), reached 78% of the European Union average in 2023 (74% in 2022), according to data from the statistics office INS confirmed by Eurostat.

Poland and Hungary followed closely, both at 77% of the EU average.

The lowest GDP per capita relative to the EU average was recorded in Bulgaria, at 64% of the average – or 36% below. In contrast, Luxembourg reported the highest level, exceeding the EU average by 137%. This figure, however, is partially explained by the significant share of foreign workers contributing to GDP who are not included in the resident population.

The GDP volume index, tracked by Eurostat, measures the ratio between a country’s aggregate GDP expenditure converted into a common comparison currency using PPP and the same indicator for the base country. PPP reflects the number of currency units required to purchase the same volume of goods and services in one country as in another – historically Austria or the EU average since 1999.

In terms of consumer prices, Bulgaria also recorded the lowest level in 2023, 41% below the EU average, followed by Romania at 39% below. Prices in Romania were, thus, on average, only 61% of the average prices in the EU.

Conversely, Denmark’s prices were the highest, at 45% above the EU average, trailed by Ireland (37% above), Luxembourg (34% above), and Finland (24% above).

(Photo source: Ruletkka/Dreamstime.com)