The dispersion in GDP per capita expressed in purchasing power standards across the EU-member states is quite remarkable, ranging from 163 percent above the EU28 average to 53 percent below average. Luxembourg has by far the highest GDP per capita, partly explained by the fact that a large number of foreign residents are employed in the country and are thus contributing to its GDP, while they are not included in the resident population. Bulgaria and Romania have GDP per capita around 50 percent below the EU average.

Comparing the Nordic countries, Norway tops the list, with a GDP per capita 95 percent above average. Sweden and Denmark both have levels around 26 percent above average, while Iceland and Finland have GDP per capita levels at 15 percent above the EU28.

GDP per capita is an indicator mainly of the economic activity in a particular country. An alternative indicator better describing households’ material welfare is Actual Individual Consumption (AIC) per capita. Luxembourg has an AIC per capita at around 40 percent above average, while Bulgaria and Romania levels are around 50 percent below the EU average. Sweden’s AIC is 17 percent above the EU average and close to Finland’s level.