Data extracted in March 2024.
Planned article update: September 2025.
Highlights
Among EU regions, the Southern region of Ireland had the highest GDP per inhabitant in 2022 (2.9 times as high as the EU average); at the other end of the scale, the lowest ratio was in the French outermost region of Mayotte (30.0% of the EU average).
Luxembourg had the highest level of compensation per employee (on average, €51.7 per hour in 2021); the only other region in the EU to record a level above €50.0 per hour was Région de Bruxelles-Capitale/Brussels Hoofdstedelijk Gewest (the Belgian capital).
The COVID-19 crisis had a considerable impact on the EU economy. However, vaccine rollouts, extensive stimulus programmes, the easing of restrictions and a wave of delayed purchases led to a rebound in economic activity, with the EU’s gross domestic product (GDP) growing 6.0% in real terms in 2021 and by a further 3.4% in 2022.
As the impact of the pandemic dissipated, the attention of policymakers and economists (re)turned to a number of longer-term, structural challenges: population ageing, climate change, weak productivity growth, rising income and wealth inequality, as well as territorial disparities within and among EU countries. However, in February 2022, Russia launched a war of aggression against Ukraine. The EU has and continues to provide Ukraine with financial, humanitarian and military support.
In July 2022, the European Central Bank (ECB) raised its key interest rates for the 1st time in 11 years, starting a period of successive interest rate hikes. At the end of 2022, double-digit inflation was recorded in the euro area, with price increases fuelled, among other factors, by rising energy costs and supply bottlenecks. The inflation rate in the euro area rose to levels that hadn’t been seen during the previous 4 decades, before a relatively rapid decline ensued during the 2nd half of 2023.
Despite the geopolitical situation and several atypical economic shocks – such as the sovereign debt crisis, Brexit and the COVID-19 pandemic – the EU’s economy grew, in real terms, by 17.0% between 2012 and 2022. The infographic above shows those EU regions – at NUTS level 2 – that experienced the largest overall increases in economic activity during this period. The Southern region of Ireland recorded the most rapid increase, as its GDP more than tripled. Very high growth rates – with economic output broadly doubling – were also recorded in the Romanian and Irish capital regions of, respectively, Bucureşti-Ilfov and Eastern and Midland.
Regional gross domestic product (GDP)
The EU’s GDP at market prices was €15.9 trillion in 2022, equivalent to an average of €35 400 per inhabitant. These latest figures marked a considerable rebound in economic activity: having fallen in real terms by 5.6% in 2020, the EU’s GDP increased 6.0% in 2021 and by a further 3.4% in 2022. Behind these aggregated figures for the whole of the EU, there were considerable differences in the economic performance of the EU’s regions – these are explored in more detail below.
Largest regional economies in the EU
In 2022, there were 7 NUTS level 2 regions within the EU where GDP was in excess of €250 billion. The capital region of France – Ile-de-France – had, by far, the largest regional economy (€783 billion of GDP), followed by the northern Italian region of Lombardia (€440 billion) and the southern German region of Oberbayern (€320 billion). The other 4 regions within this group included Eastern and Midland (Ireland), Comunidad de Madrid, Cataluña (both Spain) and Rhône-Alpes (France).
These 7 regions with the highest levels of GDP collectively accounted for 16.2% of the EU’s economic output in 2022. The concentration of economic activity in these 7 regions can be illustrated insofar as their combined output was approximately the same as that provided by the 121 regions with the lowest levels of GDP.
More about the data: measuring the size of an economy
The central measure of national accounts, GDP, summarises the economic position of a country or a region. This well-known balance has traditionally been divided by the total number of inhabitants to create a proxy measure for evaluating overall living standards, namely GDP per inhabitant.
While GDP continues to be used for monitoring economic developments, playing an important role in economic decision-making, it is complemented by other indicators to inform policy debates on, for example, social and environmental issues. This is because GDP doesn’t take account of externalities such as environmental sustainability or other issues, like income distribution or social inclusion. These are increasingly seen as important drivers for sustainable development and the overall quality of life.
In order to compensate for price level differences between countries, GDP can be converted using conversion factors known as purchasing power parities (PPPs). The use of PPPs, rather than market exchange rates, results in data being denominated in an artificial common currency unit called a purchasing power standard (PPS). In contrast to euro-based (€) series, a series denominated in PPS tends to have a levelling effect, as countries and regions with very high GDP per inhabitant in euro also tend to have relatively high price levels. For example, the cost of living in Luxembourg is generally much higher than the cost of living in Bulgaria.
Regional economic statistics are generally reported in current price (or ‘nominal’) terms; in other words, their current value during the particular reference year in question. To make comparisons over time, it is usually more revealing to make use of data in constant price (or real) terms, where the values have been adjusted to take account of price changes; in other words, they have been deflated. During periods of high inflation – such as the on-going cost-of-living crisis – a time series are presented in current price terms will show faster growth than a series in constant price terms. For example, imagine GDP rose from 1 year to the next from €100.0 billion to €110.0 billion, while inflation was 8.0%. In constant price terms using the prices of the 1st year, GDP in the 2nd year would be €101.2 billion. This results in a growth rate of 1.2% in real terms, compared with a 10.0% growth rate in nominal terms.
In 2022, the Southern region of Ireland had a level of GDP per inhabitant in PPS that was 9.5 times as high as in the French archipelago of Mayotte
In 2022, the highest levels of GDP per inhabitant were located in
- isolated pockets, including most of the capital regions of EU countries and several other regions located in Ireland, Spain and France
- a band of regions running from the Nordic EU countries, down through Germany and the Benelux countries into Austria and northern Italy.
Map 1 is based on regional GDP per inhabitant (adjusted for purchasing power and then shown as an index based on a percentage of the EU average). The regional distribution of GDP per inhabitant was relatively skewed insofar as less than 40% of NUTS level 2 regions – or 90 out of 242 regions – reported a level of GDP per inhabitant in 2022 that was equal to or above the EU average (as shown by the teal shades in Map 1).
In 2022, there were 17 NUTS level 2 regions across the EU where GDP per inhabitant was at least 50% above the EU average – as shown by the darkest shade of teal in Map 1. Among these relatively ‘wealthy’ regions, the highest level of regional GDP per inhabitant was observed in the Southern region of Ireland; its ratio was 2.9 times as high as the EU average. There were 3 other regions where GDP per inhabitant was more than 2.0 times as high as the EU average, all of which were capital regions: Luxembourg, Eastern and Midland (Ireland), and Praha (Czechia).
More about the data: comparing GDP per inhabitant across EU regions
Some of the economic differences between regions may reflect the (sometimes artificial) administrative boundaries that are used to delineate each region. It is often the case that part of the income generated in ‘wealthy‘ regions – that are hubs of business activity – may be attributed to labour input from commuters who live in surrounding regions where, among other possible advantages, the price of property and cost of living may be lower.
In addition, some regions with high levels of GDP are characterised by a strong presence of multinational enterprises. This may distort their levels of economic activity, especially if assets (for example, technology patents) are domiciled in a region. For example, the Southern region of Ireland is home to several of the world’s top technology and pharmaceutical businesses.
Map 1 shows that most of the regions with relatively low levels of GDP per inhabitant were located in the south-east corner of Europe or outermost regions of the EU. There were 12 NUTS level 2 regions across the EU where GDP per inhabitant was less than 50% of the EU average in 2022; they are shown by the darkest shade of gold. These 12 regions were concentrated in Bulgaria and Greece (each 4 regions), but also included Panonska Hrvatska (Croatia), Nord-Est (Romania) and the outermost regions of Guyane and Mayotte (both France). The lowest level of regional GDP per inhabitant was recorded in Mayotte, at 30% of the EU average.
Map 1: GDP per inhabitant in purchasing power standards (PPS), 2022
(index in relation to the EU average = 100, by NUTS 2 regions)
Source: Eurostat (nama_10r_2gdp) and (nama_10_pc)
3 eastern EU countries – Romania, Czechia and Hungary – recorded the largest regional disparities for GDP per inhabitant in 2022
Figure 1 presents information on regional disparities in GDP per inhabitant. The coefficient of variation is defined, for a particular dataset, as the ratio of the standard deviation divided by the mean; a higher ratio indicates a greater degree of dispersion.
In 2022, there were considerable regional disparities for GDP per inhabitant across 3 eastern EU countries: Romania, Czechia and Hungary. They each had coefficients of variation that were greater than 50.0%. Their coefficients of variation reflected particularly high levels of GDP per inhabitant in capital regions that could be contrasted against the remainder of the territory where GDP per inhabitant was less than the EU average. By contrast, GDP per inhabitant was much more uniformly distributed across the regions of Portugal, Austria, Finland and Sweden, where the coefficient of variation was within the range of 16.5–18.0%.
In the vast majority of EU countries for which data are available (the coefficient of variation is only computed for those countries composed of at least 5 NUTS level 2 regions), regional disparities for GDP per inhabitant fell over time. Figure 1 shows the largest falls were observed in Hungary, Finland, Portugal and Poland, where the coefficient of variation was at least 2.5 percentage points lower in 2022 than in 2012. This narrowing of regional disparities reflected faster than average growth in several relatively ‘poor’ regions that were ‘catching-up’ or converging with relatively ‘wealthier’ regions. Typically, this meant that there was slower than average growth in capital regions.
There were 5 EU countries where the coefficient of variation rose between 2012 and 2022. The largest increases were observed in Denmark and Czechia, up 11.0 and 4.6 percentage points, respectively, to 33.2% and 53.2%. The widening of regional disparities for GDP per inhabitant in Denmark and Czechia reflected faster than average growth in their capital regions of Hovedstaden and Praha. The only other EU countries to record an increase for the coefficient of variation were Romania, Greece and Italy.
_RYB2024.png)
(coefficient of variation in %, by NUTS 2 regions)
Source: Eurostat (nama_10r_2gdp)
The EU’s GDP grew by 17.0% in real terms between 2012 and 2022
Despite the relatively unstable geopolitical situation, the EU’s economy grew by 17.0% between 2012 and 2022. All of the rates of change presented in this section are in real terms; in other words, the effects of inflation have been removed. During the sovereign debt crisis, the EU’s economic output contracted 0.7% and 0.1% in 2012 and 2013. However, the level of economic activity thereafter followed an upward path during 6 consecutive years, with a peak of 2.8% growth in 2017. The direct and indirect impact of the COVID-19 pandemic led to a contraction of 5.6% in 2020. The EU economy rebounded in 2021, with growth of 6.0%, while the EU economy expanded by a further 3.4% in 2022.
Map 2 shows the overall change in regional GDP between 2012 and 2022. GDP developments were relatively skewed insofar as 147 NUTS level 2 regions had a growth rate that was below the EU average, compared with 95 regions where GDP growth was higher than the EU average.
Between 2012 and 2022, economic output increased in the vast majority of NUTS level 2 regions (223 out of 242 regions). At the upper end of the distribution, there were 24 regions where GDP grew by at least 37.5% (as shown by the darkest shade of blue in Map 2). These 24 regions were concentrated in Ireland, Hungary, Poland and Romania. There were other pockets of high GDP growth: Prov. Brabant Wallon (Belgium), Mayotte (France), Sjeverna Hrvatska (Croatia), Sostinės regionas (Lithuania), as well as Malta. The highest growth rates were recorded in
- the Irish regions of Southern (growth of 230.1%) and Eastern and Midland (99.6%)
- the Romanian capital region of Bucureşti-Ilfov (104.2%).
There were 19 NUTS level 2 regions where GDP was lower in 2022 than it had been in 2012 (they are shown with a yellow shade in Map 2). These regions were concentrated in Greece, Italy and Romania, while economic activity also fell in Saarland (Germany), Groningen (the Netherlands) and Åland (Finland). The biggest contractions in GDP were recorded in
- the Greek region of Dytiki Makedonia (where GDP fell 38.7%)
- the Romanian region of Sud-Vest Oltenia (down 11.0%)
- the Finish archipelago of Åland (down 7.9%).
Map 2: Overall change in GDP, 2012–22
(%, change in real terms, by NUTS 2 regions)
Source: Eurostat (nama_10r_2gvagr) and (nama_10_gdp)
Income
Having analsyed GDP from the output side, the focus of this section switches to income. Information is presented for primary income (from paid work and self-employment, as well as from interest, dividends and rents) and for disposable income.
Household primary income relative to GDP
More about the data: analysing regional statistics for net primary income
Within regional accounts, GDP is recorded where it is generated (a person’s place of work), whereas income is recorded at their residence (where people live). As a result, the ratio of net primary income to GDP is generally lower in regions that concentrate economic activity, such as capital regions and other major urban/metropolitan centres, and higher in regions where inter-regional commuters – people who work and live in 2 different regions – live.
Furthermore, the kind of economic activity that takes place in a region affects the relationship between net primary income and GDP. For regions specialised in capital (tangible or intangible) intensive activities, the remuneration of workers will generally constitute a lower share of the value added than in regions that are specialised in more labour intensive activities.
Primary income covers income from paid work and self-employment, as well as from interest, dividends and rents. Household primary income in the EU was valued at €9.3 trillion in 2021, compared with GDP of €14.6 trillion; as such, a ratio composed of these 2 indicators was 63.4%. Household primary income relative to GDP was lower than the EU average in 85 out of 241 NUTS level 2 regions for which data are available (no information for Malta).
There were 11 regions that recorded a ratio of household primary income relative to GDP that was less than 50.0% in 2021 (they are shown with a yellow shade in Map 3). This group was primarily composed of capital regions – those of Belgium, Czechia, Ireland, Croatia, Hungary, Poland and Slovakia – and was completed by Hamburg (Germany), Southern (Ireland), Luxembourg and Övre Norrland (Sweden). The Irish region of Southern (26.7%) had the lowest ratio in the EU, reflecting that it’s home to several of the world’s top multinational technology and pharmaceutical businesses. The low ratios of household primary income relative to GDP in the other 10 regions reflected, at least to some degree, a commuting effect. For example, the GDP of the Czech capital region is boosted by commuters living in the surrounding region of Střední Čechy. This pattern was also apparent across national borders: for example, a relatively high proportion of the economic output in Luxembourg is generated by cross-border commuters who travel from neighbouring regions, such as Prov. Luxembourg (Belgium), Trier (Germany) and Lorraine (France).
In 2021, there were 13 NUTS level 2 regions where the ratio of household primary income relative to GDP was equal to or above 80.0% (as shown by the darkest shade of blue in Map 3). The highest ratio was recorded in the Belgian region of Prov. Luxembourg (96.9%); as noted above, a relatively high proportion of its resident population works in neighbouring Luxembourg. The next highest ratios were recorded in the German regions of Lüneburg (93.3%) and Trier (91.8%); a relatively high share of their resident populations work in Hamburg and in Luxembourg, respectively.
Map 3: Household primary income relative to GDP, 2021
(%, by NUTS 2 regions)
Source: Eurostat (nama_10r_2hhinc) and (nama_10r_2gdp)
Net primary income per inhabitant
Wealth creation in the EU is often concentrated in economic hubs, where part of the output generated may be attributed to commuters living in surrounding regions. As a result, income per inhabitant in these surrounding regions tends to be relatively high when contrasted with their economic output (as measured by GDP per inhabitant).
In 2021, EU primary income per inhabitant averaged 20 700 PPS. The use of data in PPS, rather than in euro (€), takes account of price level differences between countries; the conversion to PPS takes into account the fact that household expenditure is predominantly related to consumption.
In 2021, there were 10 NUTS level 2 regions with a ratio of net primary income per inhabitant of at least 30 000 PPS; these are shown by the darkest shade of blue in Map 4. These regions were concentrated in Germany (6 out of the 10 regions), with the highest income levels exclusively found in western regions of the EU.
The highest level of primary income per inhabitant was recorded in Oberbayern (southern Germany), at 38 300 PPS in 2021. After Oberbayern, there were 3 more German regions that featured at the top of the ranking: Hamburg, Stuttgart and Darmstadt. They were followed by Luxembourg, Ile-de-France (the French capital region), Prov. Vlaams-Brabant (in Flanders, Belgium) and Utrecht (in the Netherlands). It’s worth noting that in euro terms, Luxembourg had the highest level of income (€43 700 per inhabitant). This was somewhat above the figure recorded for Oberbayern (€41 300 per inhabitant), while the 3rd highest value was recorded in the Danish capital region of Hovedstaden (€39 500 per inhabitant). The relatively high cost of living in both Luxembourg and Hovedstaden meant that they ranked 5th and 24th, respectively, when based on data in PPS terms (that compensate for price level differences).
There were 11 NUTS level 2 regions where the ratio of net primary income per inhabitant was lower than 10 000 PPS in 2021 (they are shown with a yellow shade in Map 4). These regions were concentrated in eastern EU countries, with the lowest level of primary income per inhabitant recorded in Yuzhen tsentralen (southern Bulgaria), at 6 800 PPS. There were 4 other regions where primary income per inhabitant was less than 8 000 PPS, 3 of these were also located in Bulgaria, while the other was the French outermost region of Mayotte.
Map 4: Net primary income per inhabitant, 2021
(in purchasing power standards (PPS), by NUTS 2 regions)
Source: Eurostat (nama_10r_2hhinc)
Disposable income per inhabitant
More about the data: analysing regional statistics for net disposable income
The previous section described regional differences in primary income per inhabitant across EU regions. This section focuses on regional income differences within EU countries. Rather than using net primary income, a more appropriate measure for this purpose is net disposable income, which is calculated by deducting income taxes and net social contributions from primary income while net social benefits and net current transfers are added.
Regional differences in income levels tend to be less pronounced in terms of disposable (rather than net primary) income, due to the redistributive nature of tax and welfare systems. For example, regions with relatively high levels of income may be expected to pay higher (or a greater share of) taxes and social contributions, whereas regions with higher unemployment, a high share of elderly people, or a generally more vulnerable population are likely to receive proportionally more social protection benefits. As such, the regional distribution of disposable income per inhabitant depends on the inequalities in primary income as well as other factors such as income tax, social benefits and transfer systems, as well as differences in age structure and unemployment rates between regions.
Although Eurostat collects and publishes regional data on net disposable income, it isn’t recommended to use this information to evaluate income differences across the EU. Rather, these statistics are primarily used to examine regional differences within a single country. This is because most national statistical offices don’t compile regional data for social transfers in kind. The latter are goods and services provided by government for free or at prices that aren’t economically significant. They mainly include education, health and some social security services, as well as housing, cultural or recreational services.
Figure 2 shows the overall changes in net disposable income per inhabitant and GDP per inhabitant between 2019 and 2021. As such, this comparison covers a period impacted by the COVID-19 crisis, contrasting the situation pre-pandemic with that during the early stages of the recovery. Figure 2 confirms the redistributive nature of tax and welfare systems across EU regions insofar as rates of change for disposable income per inhabitant were usually less dispersed than for GDP per inhabitant.
In 2021, disposable income in the EU averaged €17 800 per inhabitant, while GDP per inhabitant averaged €32 700; these values are in current price terms and therefore don’t take into account price changes during the period under consideration. The EU’s disposable income per inhabitant grew 4.1% between 2019 and 2021, which was slightly lower than the corresponding rate of change for GDP per inhabitant (up 4.5%).
Across NUTS level 2 regions, disposable income per inhabitant peaked in 2021 at €36 700 in Luxembourg. Between 2019 and 2021, the most rapid growth for disposable income per inhabitant was recorded in Sostinės regionas (the capital region of Lithuania), up 22.4%. In 2021, the lowest levels of disposable income per inhabitant were recorded in the Bulgarian regions of Yugoiztochen and Yuzhen tsentralen (both €4 300). Between 2019 and 2021, the biggest contraction in disposable income per inhabitant was observed in the Greek island region of Notio Aigaio, down 9.2%.
Within individual EU countries, there were sometimes considerable differences in regional developments for disposable income per inhabitant between 2019 and 2021. For example, Severen tsentralen registered the most rapid expansion of disposable income per inhabitant in Bulgaria (up 19.5%). This was 15.4 percentage points higher than the rate of change recorded in the capital region of Yugozapaden (up 4.1%), which was the lowest rate among Bulgarian regions. Greece, Finland and France were also characterised by a wide variation in regional developments for disposable income per inhabitant between 2019 and 2021.
There was a relatively rapid recovery from the impact of the COVID-19 crisis across most regions of the EU, which reflected (at least in part) a shift towards remote work and hybrid work models. GDP per inhabitant was higher in 2021 than it had been in 2019 for 202 out of 242 NUTS level 2 regions. The highest growth rate between 2019 and 2021 was recorded in the Bulgarian region of Severozapaden (up 29.6%). Many of the regions with lower levels of GDP per inhabitant in 2021 (compared with 2019) were popular tourist destinations that continued to feel the impact of lockdown measures and travel restrictions, with reduced visitor numbers. They were concentrated in southern EU countries – Greece, Spain, Italy and Portugal – but also included (among others) Ile-de-France, Midi-Pyrénées (both France), Salzburg and Tirol (both Austria).
_compared_with_2019,_by_NUTS_2_regions)_RYB2024.png)
(%, overall change (based on data in €) compared with 2019, by NUTS 2 regions)
Source: Eurostat (nama_10r_2hhinc) and (nama_10r_2gdp)
Productivity indicators
This final section provides information about the compensation of employees per hour worked and labour productivity (defined here as gross value added per person employed); these indicators may be used to analyse patterns/developments of regional competitiveness.
Compensation of employees
One of the principal areas of interest/concern for many employees is their level of remuneration; this has become an even greater preoccupation during the cost-of-living crisis. Employee compensation is defined (within national accounts) as remuneration, in cash or in kind (such as a company car or vouchers for meals), payable by an employer to an employee in return for work done; it also includes payments linked to social contributions (such as health or pension contributions). The data presented in Figure 3 refer to gross (in other words, before tax) hourly compensation in euro (€).
In 2021, the highest level of employee compensation was recorded in Luxembourg
In 2021, employees working in the EU received an average gross compensation of €25.3 per hour that they worked. The highest level of employee compensation across NUTS level 2 regions was recorded in Luxembourg (€51.7 per hour), while the lowest was registered in the Nord-Est region of Romania (€5.5 per hour). As such, the ratio between the highest and lowest levels of employee compensation was 9.4 : 1.
There were 18 NUTS level 2 regions in the EU where the average level of employee compensation was at least €40.0 per hour in 2021. These 18 regions were principally concentrated in Belgium (5 regions), Denmark (all 5 regions) and Germany (4 regions). The other 4 regions were located in Luxembourg, France and the Netherlands (2 regions).
A more detailed analysis reveals the highest regional levels of employee compensation were usually recorded in capital regions. This pattern was repeated in 18 of the 22 multi-regional EU countries. This is unsurprising given the high cost of living in many capitals, while most also play an important role as the location for company headquarters, financial services and national administrations, which tend to offer above average levels of compensation. The only exceptions, where the highest level of employee compensation wasn’t recorded in the capital region, were
- Oberbayern in Germany (€42.4 per hour)
- Dytiki Makedonia in Greece (€11.9 per hour)
- País Vasco in Spain (€26.1 per hour)
- Provincia Autonoma di Bolzano/Bozen in Italy (€28.4 per hour).
The regional distribution of employee compensation was heavily skewed in several EU countries. This was generally because the capital region had a much higher level of compensation. For example, someone working in the Polish capital region of Warszawski stoleczny (€13.6 per hour) could expect to earn more than twice as much as an someone working in Warminsko-Mazurskie (€6.1 per hour), where the lowest levels of compensation in Poland was recorded. There was a relatively low level of regional variation in the average hourly compensation of employees across Slovenia (which is composed of just 2 regions), Hungary, Denmark and Finland.
_RYB2024.png)
(€ per hour worked, by NUTS 2 regions)
Source: Eurostat (nama_10r_2lp10) and (nama_10_lp_ulc)
Labour productivity
More about the data: analysing regional statistics for labour productivity
Labour productivity can be defined as GDP (or gross value added) divided by a measure of labour input, typically the number of people employed or the total number of hours worked. The information presented in Map 5 is based on labour productivity per hour worked, which shouldn’t be influenced by changes in the structure of the employment market. For instance, the ratio isn’t impacted if there is a shift from full-time to part-time work, or if working hours are curtailed (for example, due to restrictions such as those imposed during the COVID-19 crisis).
High labour productivity may be linked to the efficient use of labour and/or reflect the skills and experience of the labour force. These in turn may result from the specific mix of activities present in each regional economy as some activities: for example, knowledge-intensive industrial activities, business or financial services tend to be characterised by higher levels of labour productivity (as well as higher levels of employee compensation).
In 2021, an average of €43.8 of value was added for each hour worked in the EU. This figure – based on GDP per hour worked – can be used to derive a set of nominal labour productivity indices, which are presented relative to the EU average = 100.
Labour productivity was relatively evenly distributed across EU regions, insofar as 126 (out of 242) NUTS level 2 regions had an index that was above the EU average in 2021, while 116 regions had indices that were below the EU average. At the top end of the distribution, there were 25 regions where regional levels of labour productivity were at least 50% above the EU average (as shown by the darkest shade of blue in Map 5). They were exclusively in western and northern EU countries. The highest counts were recorded in Germany (6 regions), Denmark (all 5 regions) and Belgium (4 regions), while the remainder of this group was composed of
- 2 regions from each of Ireland, the Netherlands and Sweden
- the capital regions of France and Finland
- Luxembourg (a single region)
- the westernmost region of Austria – Vorarlberg.
The Southern region of Ireland had the highest level of labour productivity in 2021: for each hour worked, an average of €139.2 of value was added; this was 3.2 times as high as the EU average. There were 3 other regions where labour productivity was more than twice as high as the EU average: the Eastern and Midland region of Ireland (2.7 times), Luxembourg (2.3 times) and the Danish capital region of Hovedstaden (2.2 times). As noted above, the relatively high levels of GDP and labour productivity in Irish regions may be linked to the presence of multinational enterprises (especially when capital assets are domiciled in a region).
There were 23 regions where labour productivity was less than 35% of the EU average in 2021 (they are shown with a yellow shade in Map 5). These regions were located in eastern and southern EU countries, with the highest concentrations in Poland (9 regions), Bulgaria (5 out of 6 regions, the exception being the capital region of Yugozapaden), Romania (also 5 regions) and Greece (3 regions). The remaining region in this group of 23 was the easternmost region of Croatia – Panonska Hrvatska.
In 2021, the lowest level of labour productivity was observed in the Bulgarian region of Yuzhen tsentralen, where for each hour worked an average of €8.9 of value was added; this was 20% of the EU average. There were 3 other regions in the EU with labour productivity indices that were less than 25% of the EU average: Nord-Est in Romania (21%) and 2 other Bulgarian regions – Severozapaden and Severen tsentralen (both 22%).
Map 5: Nominal labour productivity, 2021
(index in relation to the EU average = 100, based on € per hour worked, by NUTS 2 regions)
Source: Eurostat (nama_10r_2nlp), (nama_10_gdp) and (nama_10_a10_e)
Source data for figures and maps
Data sources
European system of national and regional accounts
The European system of national and regional accounts (ESA 2010) is the latest internationally compatible accounting framework for a systematic and detailed description of the EU economy. ESA 2010 has been implemented since September 2014 and is consistent with worldwide guidelines on national accounting, as set out in the system of national accounts (2008 SNA).
ESA 2010 provides a framework for consistent, comparable, reliable and up-to-date economic statistics for EU countries. The legal basis for these statistics is Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union. ESA 2010 isn’t restricted to annual national accounting, as it also applies to regional accounts and to quarterly and shorter or longer period accounts. It is harmonised with the concepts and classifications used in many other social and economic statistics (for example, statistics on employment, business or international trade) and as such serves as a central reference for socioeconomic statistics.
Regional data
Statistics from regional economic accounts are presented here for NUTS level 2 regions, although more detailed regional statistics are available for NUTS level 3 regions for GDP, gross value added at basic prices and employment. The data for statistical regions in the EFTA and candidate countries are sometimes unavailable and have been replaced (where appropriate) by national aggregates. Data for non-EU countries are sometimes only available for earlier reference periods when compared with those presented for EU regions; all discrepancies are footnoted under maps and figures.
Indicator definitions
Gross domestic product and value added: Gross domestic product (GDP) is a basic measure of the overall size of an economy. As an aggregate measure of production, GDP is equal to the sum of the gross value added of all resident institutional units engaged in production, plus any taxes on products and minus any subsidies on products.
Income: The distribution and redistribution of income results in balancing items, namely primary income and disposable income. In regional accounts these income measures are limited to households. Primary income concerns 2 types of income
- primary incomes receivable by virtue of direct participation in the production process, mainly operating surplus and mixed income, and the compensation of employees
- property incomes receivable by the owner of a financial asset or a tangible non-produced asset in return for providing funds to, or putting the tangible non-produced asset at the disposal of, another institutional unit (interest, dividends, withdrawals from income of quasi-corporations, reinvested earnings of foreign direct investment, rents on land).
Disposable income is the total amount of money that households/individuals have available for spending or saving after allowing for income taxes, contributions and transfers.
Compensation of employees and labour productivity: In national accounts, the compensation of employees is defined as the total remuneration, in cash or in kind, payable by an employer to an employee in return for work done by the latter during an accounting period. It consists of wages and salaries in cash or in kind and employer’s actual and imputed social contributions.
Labour productivity reflects the (average) amount of goods and services produced relative to a measure of labour input. It can be measured in a variety of ways. For example, GDP (in terms of purchasing power standards) relative to the number of employed people or relative to the total number of hours worked. In both cases, the resulting ratio for a country or a region can subsequently be expressed as an index (relative to the EU average).
Context
With the arrival of a new European Commission, 6 priorities for 2019–24 were identified, including 3 with a direct impact on the economy: The European Green Deal, A Europe fit for the digital age and An economy that works for people.
In December 2020, the multiannual financial framework covering the period 2021–27 was adopted. This provided resources to kick-start the European economy, through boosting the green and digital transitions, and making it fairer, more resilient and more sustainable for future generations. The framework was reinforced by an emergency European Recovery Instrument (also known as Next Generation EU) which provided a plan that was designed to ensure the EU could emerge stronger from the COVID-19 crisis, transforming economies and societies so that they work for everyone, by making Europe healthier, greener, and more digital.
The framework for EU cohesion policy dates back to 1986 and the Single European Act. This sought to enhance regional policies by ensuring balanced development, as well as social, economic and territorial cohesion. The intent of regional policies isn’t the mere transfer of economic wealth from relatively affluent to less affluent regions, but also support for programmes that aim to resolve regional issues. Cohesion policy is an active form of solidarity that includes measures designed – through strategic investment – to boost economic growth, jobs, the quality of life, as well as green and digital transitions. It plays a role in 5 key areas
- a more competitive and smarter Europe (for example, through innovation and digitisation, paying greater attention to regions at risk of falling into development traps)
- a greener, carbon-free Europe (investing in energy transition, renewables and the fight against climate change and providing support to those territories most affected by the socioeconomic impact of the transition to climate neutrality)
- a more connected Europe (enhancing mobility and highlighting strategic transport and digital networks, for example investing in the digital transition to expand very-high-speed internet access, boost digital skills, and invest in information technology equipment)
- a more social and inclusive Europe (supporting quality employment, education, skills, social inclusion and equal access to healthcare)
- a Europe closer to its citizens (promoting locally led development, by fostering sustainable and integrated development across all types of territories).
To reach these goals, the EU has set aside €392 billion for economic, social and territorial cohesion during the period 2021–27. This support is principally delivered through 4 key instruments: the European Regional Development Fund, the European Social Fund+, the Cohesion Fund and the Just Transition Fund.
Regional accounts are important in this context, as they are used, among other purposes, to decide upon the regional allocation of cohesion policy expenditure. As of 2021, the rules for allocating funding became simpler: they were tailored to locally led development strategies that continue to take account of GDP per inhabitant, alongside information on the socioeconomic and environmental situation (for example, youth unemployment, low levels of educational attainment, the reception and integration of migrants, or climate change).
This article forms part of Eurostat’s annual flagship publication, the Eurostat regional yearbook.
Maps can be explored interactively using Eurostat’s Statistical Atlas.
Explore further
Other articles
- Building the system of national accounts – online publication
- European sector accounts – background (background article)
- European system of national and regional accounts – ESA 2010 (background article)
- GDP per capita, consumption per capita and price level indices
- National accounts and GDP
- Rural Europe
- Urban Europe
Database
- Regional economic accounts (reg_eco10)
- Gross domestic product indicators (reg_eco10gdp)
- Branch and household accounts (reg_eco10brch)
- Main GDP aggregates (nama_10_ma)
- Auxiliary indicators (population, GDP per capita and productivity) (nama_10_aux)
- Basic breakdowns of main GDP aggregates and employment (by industry and by assets) (nama_10_bbr)
- Regional economic accounts (nama_10reg)
- Gross domestic product indicators (nama_10r_gdp)
- Branch and household accounts (nama_10r_brch)
Thematic section
Publications
General link
Paper and PDF publications
- European system of accounts – ESA 2010
- Eurostat regional yearbook – 2024 edition
Online publications
Selected datasets
- Regional economic accounts – ESA 2010 (t_reg_eco)
- Regional economic accounts – ESA2010 (t_nama_10reg)
Methodology
Manuals and further methodological information
- ESA 2010 – manuals and guidelines
- Interactive version of the European system of accounts – ESA 2010
- Manual on regional accounts methods – 2013 edition
- Methodological manual on territorial typologies
- Statistical regions in the European Union and partner countries: NUTS and statistical regions 2021 – 2022 edition
Metadata
- Regional economic accounts (ESMS metadata file – reg_eco10_esms)
External links
European Commission – Directorate Generals
European Commission – resources