What is GDP?

Gross domestic product (GDP) per capita is a measure of a country’s productivity. The figures are expressed in purchasing power standards (PPS), with the EU average set to equal 100.

A value for GDP per capita greater than 100 is therefore above the EU average, and vice versa. The use of PPS means figures are adjusted to remove differences in price levels between countries. This allows comparisons between countries within each year, although they should not be used to make comparisons over time. GDP.jpg

The UK’s GDP per capita was 9% higher than the EU average in 2013, and similar to that of France. Luxembourg was an outlier with the highest GDP per capita (with a value of 257 in 2013, making it more than 2.5 times the EU average).

The countries with the lowest GDP per capita were generally the newer members of the EU which have joined since 2004/3, with Bulgaria the lowest at just under half (45%) of the EU average.
The UK’s annual GDP growth rate was joint 6th highest in the EU in 2013.

The calculation of the annual growth rate of GDP volume allows comparisons, both over time and between economies of different sizes. For measuring the growth rate of GDP in terms of volumes, the GDP at current prices is valued in the prices of the previous year. Therefore, price movements will not inflate the growth rate.

In 2013, the UK had the joint sixth highest growth rate in GDP of the EU countries – growing 1.7% compared with the previous year. It was the second highest growth rate among member states that joined the EU before 2004.4

Generally, higher GDP growth rates were experienced by smaller EU member states. 11 EU countries experienced negative GDP growth rates in 2013. The UK’s government debt-to-GDP ratio is slightly above the EU average

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