The latest EU GDP rankings: Hungary ahead of Slovakia and Greece

In 2023, Hungary’s GDP per capita reached 77% of the EU average, ranking 22nd, as the country shows both progress and challenges in economic growth. Despite outperforming some EU nations, Hungary lags behind Romania and faces high budget deficits.

The latest EU GDP rankings

According to Eurostat‘s latest ranking published on 17 December, Hungary’s GDP per capita stood at 77% of the EU average in 2023, ranking 22nd among Member States. Növekedés notes that while this places Hungary ahead of countries like Croatia, Slovakia, Latvia, Greece, and Bulgaria, it lags behind Romania, which has surpassed it at 78%. The data highlights significant disparities in economic development within the EU, with Luxembourg leading at 237% of the EU average, and Bulgaria at just 64%.

EU flags GDP ranking — Photo: depositphotos.com

Over the past decade, Hungary has shown notable progress, with a 9-percentage point improvement in its GDP per capita relative to the EU average. However, the gap with the Czech Republic, which had a 17-percentage point advantage in 2013, has only narrowed slightly to 13 points by 2023. Hungary has outperformed Slovakia and Greece, both of which have seen deteriorations in their relative GDP. While Poland has matched Hungary’s progress, the V4 countries still show varying levels of economic development, with Hungary improving its position to second place in the region. The figures raise important questions about how the EU can address these disparities to improve competitiveness.

Per capita consumption and income inequality

In 2023, Hungary’s per capita consumption relative to the EU average showed slower growth compared to GDP per capita, with a gap of 7 percentage points. Among the V4 countries, Hungary ranked second, behind Poland, which recorded the highest growth in per capita consumption. However, Hungary’s consumption-to-GDP ratio was the lowest in the region at 70%, compared to Poland’s 83%, the Czech Republic’s 81%, and Slovakia’s 77%. This highlights Hungary’s relatively lower household consumption compared to its economic output. While consumption growth in Hungary lags behind GDP growth, it still outpaced Greece’s modest improvement. Hungary’s higher GINI index of 29 indicates significant income inequality, suggesting that consumption growth may be unevenly distributed.

Budget deficit

Hungary’s budget deficits have remained high in recent years, standing at 7.1% in 2021, 6.2% in 2022, and 6.7% in 2023. This contrasts with significantly lower deficits in Bulgaria and Croatia, which recorded 3.9%, 2.9%, and 2.6% in 2021-2023, respectively. While Romania’s deficits were similar to Hungary’s, at 7.1%, 6.4%, and 6.5%, these high figures in Hungary and Romania could suggest that state spending is being used to stimulate GDP growth.

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Featured image: depositphotos.com