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Friday, Apr. 4, 2025

Has the economic gap between Europe and the United States increased in the past decade?

Gabriel Vinocur, Econofact
yes

In recent years, the U.S. economy has grown at a faster rate than the European Union’s, which is currently made up of 27 member states.

According to the World Bank, in the period 2008-2023, EU GDP grew by 13.5% (from $16.37 trillion to $18.59 trillion) while U.S. GDP rose by 87% (from $14.77 to $27.72 trillion). The UK’s GDP increased by 15.4%. In 2023, EU GDP was 67% of U.S. GDP — down from 110% in 2008.

Accounting for population, EU GDP per capita as a percentage of U.S. GDP per capita fell from 76.5% in 2008 to 50% in 2023. 

The major factor for this widening economic gap is a discrepancy in productivity, according to the Draghi report on EU competitiveness. The report notes that, out of the largest fifty technology firms in the world, only four are in Europe. 

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