Dutch GDP per capita in 2023 ranks fourth in the EU

© Nikki van Toorn
Dutch gross domestic product (GDP) per capita was nearly 58 thousand euros in 2023. This puts the Netherlands in fourth place within the European Union, the same ranking as in 2022. Just as in the previous year, GDP per capita was one and a half times the EU average of nearly 38 thousand euros. This is evident from figures released by Statistics Netherlands (CBS) and Eurostat.
Luxembourg had the highest GDP per capita in the EU. This stems from the relatively large number of financial institutions in the country, and the fact that many people who work there do not live there. In second place was Ireland, which is also home to many foreign multinationals, followed by Denmark and the Netherlands. Bulgaria’s GDP per capita is the lowest in the European Union at less than 15 thousand euros. This is more than two and a half times lower than the EU average.


Netherlands rises one spot after adjusting for price level differences (purchasing power parity)

Discrepancies in price levels between countries can be substantial. For example: in the Netherlands, one euro buys fewer goods than in Bulgaria. Eurostat adjusts for price differences in order to better compare GDP per capita between countries. Bulgaria's GDP per capita is approximately a quarter compared to that of the Netherlands. However, after adjusting for price differences, Bulgaria's GDP per capita is approximately half of Dutch GDP per capita.

The Netherlands moved up one spot to third place in the ranking for GDP per capita adjusted for price differences. Prices are lower in the Netherlands than in Denmark, allowing the Netherlands to pass Denmark.

Share of individual consumption in the Netherlands lower than the EU average

Another measure of material wealth in a country is actual individual consumption per capita, which is also adjusted for price level differences. This consists of consumption by households, non-profit institutions serving households and individual consumption by the government. In the Netherlands, this amounted to nearly 30 thousand euros; 61 percent of GDP, which puts the Netherlands in fourth place within the EU. The EU average is 65 percent of GDP.

In Luxembourg and Ireland, actual individual consumption per capita is low as a share of GDP. Countries that are home to many (foreign) enterprises are more likely to have a lower share of actual consumption per capita of GDP. Luxembourg remained first in the rankings in 2023, but the gap with other countries is narrowing. Ireland dropped to seventh place. When actual individual consumption per capita is adjusted for price level differences, Austria ranked second in the EU, while based on GDP per capita it ranked fifth.

Sources

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