Standard in Croatia a Quarter Lower than the EU Average

The standard of citizens in Croatia slightly improved in 2022 and was exactly a quarter lower than the average of the European Union, as shown by the first estimates from Eurostat on Tuesday.

Eurostat measures the standard of living through actual individual consumption per capita, which indicates how much goods and services individuals consumed, whether they paid for them themselves or the costs were borne by the state or non-governmental organizations, as noted by the European statistical office.

Actual individual consumption (AIC) per capita is expressed in terms of purchasing power standard, an artificial currency that eliminates price differences among countries. In 2022, Luxembourg boasted the highest standard, expressed in actual individual consumption per capita, which was 36 percent higher than the European average. However, the crisis took its toll, as in 2021 they were 46 percent above the average.

Croatia alongside Slovakia

Germany and Austria follow with consumption approximately one-fifth higher than the EU average. Italy, Cyprus, and Lithuania are closest to the average.

Slovenia, Spain, Portugal, Romania, and Malta lagged behind the average by 10 to 15 percent.

Croatia is in the group of countries with the lowest standard in 2022, expressed in actual individual consumption per capita, which is 25 percent lower than in the EU. In 2020, it was 28 percent lower. The closest to Croatia in 2022 was Slovakia, which lagged behind the average by 27 percent. Greece, Hungary, and Estonia are also in this group, where consumption was about 30 percent below the average.

The lowest level of actual individual consumption per capita was recorded last year by Bulgaria, which was a third lower than the EU average.

Methodological Advantage of Luxembourg

Last year, Luxembourg also confirmed its position as the country with the highest GDP per capita, more than two and a half times higher than the average. Eurostat reminds us of the large share of foreign workers in the labor force of the principality. Although these workers contribute to GDP creation, they are not included in the residential population used to calculate GDP per capita.

Luxembourg deviates significantly less from the EU average in the category of actual individual consumption since foreign workers spend their income in their home countries, statisticians explain.

Smaller Lag

Ireland confirmed its second place with a GDP per capita more than double the average, statisticians calculated. In Denmark and the Netherlands, it was about one-third higher, in Austria by a quarter, and in Sweden and Belgium by one-fifth.

France, Malta, and Italy were closest to the average last year.

Slovenia, Cyprus, the Czech Republic, Lithuania, and Estonia were about 10 percent below the average. Poland, Hungary, Portugal, Romania, and Latvia lagged behind the average by 20 to 30 percent, and Croatia is also in this group with a GDP per capita 27 percent lower than the EU average. In 2021, the lag behind the Union was exactly 30 percent.

By far the lowest GDP per capita last year was recorded by Bulgaria, which was 41 percent lower than the Union average, according to Eurostat estimates.