Concept

Economy of the European Union

Summary
The economy of the European Union is the joint economy of the member states of the European Union (EU). It is the third largest economy in the world in nominal terms, after the United States and China, and the third one in purchasing power parity (PPP) terms, after China and the United States. The European Union's GDP estimated to be around 16.6trillion(nominal)in2022representingaroundonesixthoftheglobaleconomy.GermanyhasbyfarthebiggestnationalGDPofallEUcountries,followedbyFranceandItaly.TheeuroisthesecondlargestreservecurrencyandthesecondmosttradedcurrencyintheworldaftertheUnitedStatesdollar.Theeuroisusedby20ofitsmembers,overall,itistheofficialcurrencyin26countries,intheeurozoneandinsixotherEuropeancountries,officiallyordefacto.TheEuropeanUnioneconomyconsistsofaninternalmarketofmixedeconomiesbasedonfreemarketandadvancedsocialmodels.Forinstance,itincludesaninternalsinglemarketwithfreemovementofgoods,services,capital,andlabor.TheGDPpercapita(PPP)was16.6 trillion (nominal) in 2022 representing around one sixth of the global economy. Germany has by far the biggest national GDP of all EU countries, followed by France and Italy. The euro is the second largest reserve currency and the second most traded currency in the world after the United States dollar. The euro is used by 20 of its members, overall, it is the official currency in 26 countries, in the eurozone and in six other European countries, officially or de facto. The European Union economy consists of an internal market of mixed economies based on free market and advanced social models. For instance, it includes an internal single market with free movement of goods, services, capital, and labor. The GDP per capita (PPP) was 43,188 in 2018, compared to 62,869intheUnitedStates,62,869 in the United States, 44,246 in Japan and 18,116inChina.TherearesignificantdisparitiesinGDPpercapita(PPP)betweenmemberstatesrangingfrom18,116 in China. There are significant disparities in GDP per capita (PPP) between member states ranging from 106,372 in Luxembourg to 23,169inBulgaria.WithalowGinicoefficientof31,theEuropeanUnionhasamoreegalitariandistributionofincomethantheworldaverage.EUinvestmentsinforeigncountriestotal23,169 in Bulgaria. With a low Gini coefficient of 31, the European Union has a more egalitarian distribution of income than the world average. EU investments in foreign countries total 9.1 trillion, while the foreign investments made in the union total $5.1 trillion in 2012, by far the highest foreign and domestic investments in the world. Euronext is the main stock exchange of the Eurozone and the world's sixth largest by market capitalisation. The European Union's largest trading partners are the United States, China, the United Kingdom, Switzerland, Russia, Turkey, Japan, Norway, South Korea, India, and Canada. In 2018, public debt in the union was 80% of GDP, with disparities between the lowest rate, Estonia with 8.
About this result
This page is automatically generated and may contain information that is not correct, complete, up-to-date, or relevant to your search query. The same applies to every other page on this website. Please make sure to verify the information with EPFL's official sources.
Related lectures (16)
Quantum Chemistry: Energy Quantization and Eigenvalues
Covers the quantization of energy levels in quantum chemistry.
Residential Energy Demand Analysis, Modeling, and Forecasting
Explores residential energy demand analysis, modeling, and forecasting, emphasizing the importance of understanding consumption patterns and forecasting future demand.
Economy-wide Material Flow Accounts
Explores economy-wide material flow accounts, analyzing material flows in an economy and their environmental implications.
Show more
Related publications (2)

Elements for European logistics policy - A discussion paper

Tristan Chevroulet

Following a Finnish initiative the European Commission is preparing a communication on logistics in 2006. To support the preparations Finland arranged the so called EULOC-process in which logistics experts from different countries were invited to participa ...
Ministry of Transport and Communications of Finland2006

Long-term trends of primary and secondary pollutant concentrations in Switzerland and their response to emission controls and economic changes

Hubert van den Bergh

A de-trending technique was developed for short-term and annual variations to identify long-term trends in primary and secondary pollutants. With this approach, seasonal and annual variations are removed using a mean year; the residual meteorol. short-term ...
2001
Related concepts (8)
Member state of the European Union
The European Union (EU) is a political and economic union of 27 member states that are party to the EU's founding treaties, and thereby subject to the privileges and obligations of membership. They have agreed by the treaties to share their own sovereignty through the institutions of the European Union in certain aspects of government. State governments must agree unanimously in the Council for the union to adopt some policies; for others, collective decisions are made by qualified majority voting.
Economy of Poland
The economy of Poland is an industrialized, mixed economy with a developed market that serves as the sixth-largest in the European Union by nominal GDP and fifth-largest by GDP (PPP). Poland boasts the extensive public services characteristic of most developed economies. Since 1988, Poland has pursued a policy of economic liberalization but retained an advanced public welfare system. This includes universal free public healthcare and education (including tertiary), extensive provisions of free public childcare and parental leave.
Luxury goods
In economics, a luxury good (or upmarket good) is a good for which demand increases more than what is proportional as income rises, so that expenditures on the good become a greater proportion of overall spending. Luxury goods are in contrast to necessity goods, where demand increases proportionally less than income. Luxury goods is often used synonymously with superior goods. The word "luxury" derives from the Latin verb luxor meaning to overextend or strain.
Show more