EU: GDP Share Declines, but Poorer Citizens Fare Better

The European Union (EU) faces a seemingly negative image, with its share of global GDP declining. However, an analysis by Social Europe reveals a more complex reality.

While the EU's share of global GDP has decreased, this is due to the growth of other economies, such as China. Despite crises, the EU has achieved cohesive growth, reducing inequalities among member states.

The developmental convergence in Central and Eastern Europe played a significant role. Furthermore, income support measures during the pandemic and the energy crisis contributed to reducing inequality within countries.

Central and Eastern Europe experienced strong growth, with GDP per capita increasing significantly. In contrast, Mediterranean countries faced difficulties after the financial crisis.

The composition of the EU's income pyramid is changing, with an increasing percentage of people from Central and Eastern Europe entering the higher income brackets.

Despite progress, challenges remain in achieving a truly cohesive Europe. New crises and policies threaten achievements. Improving the situation of the poor should be welcomed, as it is morally and economically desirable.