Germany is being overtaken by several countries in the European Union, including Romania. Revenues in our country have increased three times compared to revenues in Germany. What does the latest EBRD study show?
Germany, caught up by the EU states
A recent study by the European Bank for Reconstruction and Development (EBRD) shows that per capita incomes have increased in the 8 Central and Eastern European states that joined the EU in 2004.
Is about:
- Czech Republic
- Estonia
- Hungary
- Latvia
- Lithuania
- Poland
- Slovakia
- Slovenia
GDP also increased in Romania
The same study reveals that an increase in GDP was also recorded in Romania and Bulgaria, countries that entered the EU in 2007.
GDP per capita, according to exchange rates, registered a significant increase in the eight states.
In 1995, its share of GDP per capita in Germany was only 14%, while in 2003 it rose to 26%, and in 2023 it reached 50%.
According to the EBRD report, since the accession of the eight states to the European Union, the economic output of the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia has approached that of Germany by 24 percentage points.
A considerable part of this economic expansion, more precisely 14 percentage points, can be interpreted as a “bonus” obtained as a result of joining the European Union.
This phenomenon derives from a rapid increase in exports in these states compared to their GDP. The fact is explained by their deeper integration into European and global supply chains.
The effect of joining the EU accentuated the trend of income convergence.
According to EBRD experts, in 1995 the average GDP per capita in the eight listed EU states, which represented 14% of GDP per capita in Germany, was in line with the average ratio currently observed in EU neighboring countries, including:
- Moldavia
- Turkey
- and Ukraine
In 2023, there was significant variation in GDP per capita levels among states that joined the EU after 1 May 2004, such as Croatia, Romania and Bulgaria.
Compared to Germany’s GDP per capita in 2023:
- that of Bulgaria was 28%
- while that of Estonia and Slovakia varied between 58 and 59%
Per capita incomes in Bulgaria and Romania tripled compared to Germany.
Poland saw the biggest increase
In the 11 EU countries in the Central and Eastern Europe region, the average ratio of exports to GDP registered an increase. It increased from 39% in 1995 to 44% in 2003 and to 69% in 2023.
Poland recorded the highest relative growth in the period 2004-2023.
In these states, the ratio of exports to GDP increased from 34% to 57%.
In 2023, the ratio of export to GDP varied, from 40% in Romania to 92% in Slovakia.
