Economy of Europe

Economy of Europe
The Île-de-France region has the largest gross domestic product in Europe[1]
Statistics
Population748 million[2][3] (2021)
GDP
GDP rank
GDP growth
0.3% (2023 est.)[6]
GDP per capita
  • $34,510 (nominal; 2023 est)[7]
  • $50,670 (PPP; 2023 est)[8]
GDP per capita rank
6.9% (2023 est.)[9]
16.7 million (2022)[10]
Public finances
75.4% of GDP (2023 est.)[11]
Most numbers are from the International Monetary Fund. IMF Europe Datasets
All values, unless otherwise stated, are in US dollars.
World economy

The economy of Europe comprises about 748 million people in 50 countries.

The difference in wealth across Europe can be seen roughly in the former Cold War divide, with some countries breaching the divide (Greece, Portugal, Slovenia, the Czech Republic, Lithuania, Latvia and Estonia).[12] Whilst most European states have a GDP per capita higher than the world's average and are very highly developed, some European economies, despite their position over the world's average in the Human Development Index, are relatively poor. Europe has total banking assets of more than $50 trillion and its Global assets under management is more than $20 trillion.[13][14]

The formation of the European Union (EU) and in 1999 the introduction of a unified currency, the Euro, brought participating European countries closer through the convenience of a shared currency.[15] Various European states have increased their economic links through regional integration. The EU is a sui generis political entity, combining the characteristics of both a federation and a confederation. As one entity, the union is one of the largest economies in the world, having influence on regulations in the global economy due to the size of its single market with Iceland, Liechtenstein, Norway, and Switzerland.

Throughout this article "Europe" and derivatives of the word are taken to include selected states whose territory is only partly in Europe, such as Turkey, Azerbaijan and Georgia, and states that are geographically in Asia, bordering Europe and culturally adherent to the continent, such as Armenia and Cyprus.[16]

Europe's largest national economies by nominal GDP over US$1.0 trillion are: Germany ($4.43 trillion), United Kingdom ($3.33 trillion), France ($3.05 trillion), Italy ($2.19 trillion), Russia ($1.86 trillion), Spain ($1.58 trillion), Netherlands ($1.09 trillion).[17]

In the International Comparison Program 2021, the Commonwealth of Independent States (CIS) region was linked through the standard global core list approach, unlike in ICP 2017. Based on the results, the World Bank announced that in 2021 Russia was the world's 4th largest economy (int$5.7 trillion and 3.8 percent of the world) and the largest economy in Europe and Central Asia when measured in PPP terms (15 percent of the regional total), followed by Germany (13 percent of the regional economy).[18]

Of the top 500 largest corporations measured by revenue (Fortune Global 500 in 2010), 184 have their headquarters in Europe. 161 are located in the EU, 15 in Switzerland, 6 in Russia, 1 in Turkey, 1 in Norway.[19][needs update]

As noted in 2010 by the Spanish sociologist Manuel Castells, the average standard of living in Western Europe is very high: "The bulk of the population in Western Europe still enjoys the highest living standards in the world, and in the world's history."[20]

  1. ^ Dimitropoulou, Alexandra (20 August 2023). [https: https://www-visualcapitalist-com.translate.goog/wp-content/uploads/2021/08/Global-Wealth-Distribution.html?_x_tr_sl=auto&_x_tr_tl=fr&_x_tr_hl=fr&_x_tr_pto=wapp "Global-Wealth-Distribution"]. visualcapitalist. Retrieved 23 October 2023. {{cite web}}: Check |url= value (help)
  2. ^ "World Population Prospects 2022". United Nations Department of Economic and Social Affairs, Population Division. Retrieved 17 July 2022.
  3. ^ "World Population Prospects 2022: Demographic indicators by region, subregion and country, annually for 1950-2100" (XSLX) ("Total Population, as of 1 July (thousands)"). United Nations Department of Economic and Social Affairs, Population Division. Retrieved 17 July 2022.
  4. ^ "GDP (Nominal), current prices". International Monetary Fund. Retrieved 5 November 2022.
  5. ^ "GDP (PPP), current prices". International Monetary Fund. Retrieved 5 November 2022.
  6. ^ International Monetary Fund (2022). "Real GDP growth". IMF Data Mapper. International Monetary Fund. Retrieved 5 November 2022.
  7. ^ International Monetary Fund (2022). "Nominal GDP per capita". IMF Data Mapper. International Monetary Fund. Retrieved 5 November 2022.
  8. ^ International Monetary Fund (2022). "GDP PPP per capita". IMF Data Mapper. International Monetary Fund. Retrieved 5 November 2022.
  9. ^ International Monetary Fund (2022). "Inflation rate, average consumer prices". IMF Data Mapper. International Monetary Fund. Retrieved 5 November 2022.
  10. ^ Shorrocks, Anthony; Davies, James; Lluberas, Rodrigo (2022). Global Wealth Databook 2022 (PDF). Credit Suisse Research Institute.
  11. ^ International Monetary Fund (2022). "General government gross debt". IMF Data Mapper. International Monetary Fund. Retrieved 5 November 2022.
  12. ^ "The ABC of EU law". op.europa.eu. Retrieved 12 February 2023.
  13. ^ "• Europe: bank assets | Statista".
  14. ^ "• Assets under management in Europe 2020 | Statista".
  15. ^ "The euro: the birth of a new currency". European Central Bank. 21 May 1999. Retrieved 12 February 2023.
  16. ^ Desai, Seiju (1 September 2005). "Turkey in the European Union: A Security Perspective – Risk or Opportunity?". Defence Studies. 5 (3): 366–393. doi:10.1080/14702430500492807. ISSN 1470-2436. S2CID 154726691.
  17. ^ "World Economic Outlook Database, October 2023". IMF.org. International Monetary Fund. 10 October 2023. Retrieved 14 October 2023.
  18. ^ https://thedocs.worldbank.org/en/doc/0274411350395ce53ccd3e91a431e924-0050022024/original/FINAL-ICP-2021-Global-and-regional-highlights.pdf
  19. ^ "Global 500 2010: Countries – Australia". Fortune. Retrieved 8 July 2010. Number of companies data taken from the "Pick a country" box.
  20. ^ Castells, Manuel (26 January 2010). End of Millennium. John Wiley & Sons. ISBN 9781444323443.