Eurostat measures living standards by actual individual consumption per capita (AIC), which consists of the goods and services actually consumed by individuals, irrespective of whether these goods and services are purchased and paid for by Households, by Government or by Non-Profit Institutions Serving Households (NPISH).
AIC is expressed in purchasing power standards, an artificial currency that eliminates differences in prices between countries.
In 2020, the highest standard of living, as expressed by AIC per capita, was recorded by Luxembourg, and it was 45% above the EU average.
Italy, Cyprus and Lithuania closest to average
Luxembourg was followed by Germany and Denmark, whose standard of living was 24% and 22% above the EU average respectively. The Netherlands and Austria were close by, with a standard of living of 17% and 16% above the EU average respectively.
Cyprus, Italy and Lithuania were closest to the EU average according to AIC per capita, with their standard of living being around 4% below the EU average.
Living standards were 10% below the EU average in Ireland and 10% above the EU average in France.
Croatia alongside Bulgaria
Croatia had second lowest AIC per capita as measured by purchasing power standards, of 32% below the EU average, which is more or less in line with Eurostat’s forecast from June.
In 2019, Croatia’s AIC per capita was 34% below the EU average.
Hungary and Latvia had living standards of 30% below the EU average, while Slovakia had a standard of living of 29% below the EU average.
Bulgaria again fared worst, with AIC per capita of 39% below the EU average.
In terms of price levels, in Croatia they were by one-third lower than the EU average, which puts Croatia alongside Lithuania.
Luxembourg tops GDP per capita ranking
In terms of GDP per capita, expressed as purchasing power standards, Luxembourg was first again, with GDP per capita more than two and a half times higher than the EU average.
The high GDP per capita in Luxembourg is partly due to the country’s large share of cross-border workers in total employment. While contributing to GDP, these workers are not taken into consideration as part of the resident population which is used to calculate GDP per capita, Eurostat notes.
France and Malta closest to average
Ireland is second in terms of GDP per capita, which in 2020 was slightly more than twice the EU average. Denmark and the Netherlands follow, with GDP per capita of 35% and 32% higher than the EU average.
Austria, Sweden and Germany were close by, with GDP per capita of close to one-quarter higher than the EU average.
France is slightly above the EU average and Malta slightly below, while Italy and the Czech Republic are close to the EU average, with their GDPs per capita being around 6% lower than the average.
Croatia in the company of Greece
In 2020, Croatia had GDP per capita of 36% below the EU average, two percentage points more than in 2019.
Greece’s GDP per capita was 38% below the EU average, and Slovakia and Latvia were close by, with GDP per capita of 30% below the EU average.
Bulgaria is still at the bottom of the EU ranking, with GDP per capita of 45% below the EU average.
