Dutch GDP per capita 1.5 times the EU average

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© Hollandse Hoogte / Flip Franssen
In 2021, Dutch gross domestic product (GDP) per capita stood at over 49 thousand euros, putting the Netherlands in fifth position within the European Union. The Netherlands still ranked fourth in the previous year. The Dutch GDP per capita is 1.5 times the average across the EU. This is evident from figures on GDP per capita released by Statistics Netherlands (CBS) and Eurostat in conjunction with a newly published Economy Dashboard.

Luxembourg has the highest GDP per capita. In second place is Ireland, followed by Denmark and Sweden. At less than 10 thousand euros, Bulgaria’s GDP per capita is the lowest within the European Union. Luxembourg has had the highest per capita GDP for over 25 years. This is due to the fact that the country hosts relatively many financial institutions (with a sizeable value added) and a relatively high number of people work there but are not residents. In Ireland, the high GDP per capita is partly related to tax rules for international enterprises.

Dutch GDP per capita in 2021 equal to its pre-pandemic size

In 2021, Dutch GDP per capita was back at the level of 2019, the year before the outbreak of coronavirus. Although it exceeded the 2019 level by 1 percent, the population increased by approximately 1 percent at the same time.
In the surrounding countries, GDP per capita still fell below 2019 levels. For example, in France and Germany, GDP per capita remained approximately 2 percent under the level of 2019. Last year, average GDP per capita across the EU was still almost 1 percent down on its pre-pandemic level.

The Netherlands rises one position after adjusting for price level differences

Bulgaria’s GDP per capita is approximately one-fifth of its Dutch counterpart. However, this does not take into account possibly substantial discrepancies in price levels between the countries. For example: in the Netherlands, one euro buys fewer goods than in Bulgaria. The purchasing power of the euro may therefore be lower in one country than in the other. Eurostat adjusts for price level differences in order to make economic prosperity levels in countries more comparable.
This results in smaller GDP discrepancies between countries. After adjustment for price level differences, Bulgaria’s GDP per capita becomes approximately two-fifths of the Dutch GDP per capita. At the same time, the Netherlands shifts one position in the GDP per capita ranking and occupies fourth place after correction for price level differences.

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