ECONOMY: pure economic statistics in Europe

Eurostat, the Statistical Office of the European Union, brings out the most recent regional statistics on GDP per inhabitant in the EU25 (the 25 member states of the European Union), expressed in terms of purchasing power standards (PPS).

In 2003, GDP per inhabitant ranged from 33% of the average (of the 25 EU countries), in Lubelskie (Poland) to 278% in Inner London (UK). There is still plenty of work for the EU's regional and cohesion policies to reduce disparities within the Union...

One region in seven above 125% of the EU average...

The three leading regions in the ranking of regional GDP per inhabitant in 2003 were Inner London in the United Kingdom (278% of the average), Bruxelles-Capitale in Belgium (238%) and the Grand Duchy of Luxembourg (234%). Among the 37 regions exceeding the 125% level, seven were in Germany, six each in Italy and the United Kingdom, five in the Netherlands, three in Austria, two each in Belgium and Finland, one region each in the Czech Republic, Spain, France, Ireland and Sweden, and the Grand Duchy of Luxembourg. The only region in this group amongst the new Member States was Praha in the Czech Republic (138%).
It should be noted, however, that in some regions the GDP per inhabitant figures can be significantly influenced by commuter flows (as is the case of Inner London or Brussels). Net commuter inflows in these regions push up production to a level that could not be achieved by the resident active population on its own. The result is that GDP per inhabitant can therefore be overestimated in these regions and underestimated in regions with commuter outflows.

…and one in four below 75%

The six last regions in the ranking were all in Poland: Lubelskie and Podkarpackie (both 33% of the average), Podlaskie (36%), Świętokrzyskie, Warmińsko-Mazurskie and Opolskie (all 37%). Among the 60 regions below the 75% level, sixteen were in Poland, seven in the Czech Republic, six in Hungary, five each in Greece and Italy, four each in Germany, France (all overseas departments) and Portugal, three in Slovakia, two regions in Spain, and Estonia, Latvia, Lithuania and Malta. The lowest ranked region amongst the old Member States was Norte in Portugal (57%).

In the European Region, cohesion policies (The ERDF - European Regional Development Fund, and the Cohesion Fund), which account for around one third of the Union's budget, play a key role in the effort of development of the lowest ranked regions, in reducing development disparities by promoting policies that favour economic growth, job creation and improve the competitiveness of those regions. In particular regions with a GDP per head lower than 75% of the Union's average (in PPS).