Published by Jun 20, 2023
With a Gross Domestic Product of over 3.87 trillion Euros, the German economy was by far the largest in Europe in 2022. The similar-sized economies of the United Kingdom and France were the second and third largest economies in Europe during this year, followed by Italy and Spain. The smallest economy in this statistic is that of the small Balkan nation of Montenegro, which had a GDP of 5.8 billion Euros. In this year, the combined GDP of the 27 member states that compose the European Union amounted to approximately 15.8 trillion Euros.
The big five
Germany’s economy has consistently had the largest economy in Europe since 1980, even before the reunification of West and East Germany. The United Kingdom, by contrast, has had mixed fortunes during the same time period and had a smaller economy than Italy in the late 1980s. The UK also suffered more than the other major economies during the recession of the late 2000s, meaning the French economy was the second largest on the continent for some time afterward. The Spanish economy was continually the fifth-largest in Europe in this 38-year period, and from 2004 onwards, has been worth more than one trillion Euros.
The Celtic Tiger
The Republic of Ireland was the fastest growing economy in Europe in 2022, after reporting an annual growth rate of 12 percent. While the country has been pointed to as a success story in recent years, with a drastic turnaround in its fortunes since the Eurozone crisis of the 2010s, when it was among the worst hit countries in the EU, Ireland has also been criticized internationally for enabling the tax avoidance of multinational corporations (MNCs) who have set up European headquarters in Dublin. Ireland's growth rate is so boosted by the profit-shifting activities of MNCs, that the statistical category "EU ex-Ireland" (that is, the EU excluding Ireland) has become common in order to avoid the country upwardly biasing EU averages.
Europe's growth champions
Malta, Portugal, Iceland, and Croatia also reported high rates of growth in this year, with every country in Europe reporting some degree of growth, apart from Estonia, which was severely negatively impacted by the sanctions placed on its large neighbor, Russia. By contrast, almost every country in the European Union shrank in 2020, during which time the Coronavirus pandemic caused a shutdown of the European economy, with international trade frozen and consumer spending lagging. By contrast, European countries' economic challenge has moved from stimulating growth, as it was in 2020 and 2021, to controlling rampant inflation which has broken out in the wake of the pandemic.
Gross domestic product at current market prices of selected European countries in 2022 (in million euros)
| Characteristic | GDP in million euros (at current prices) |
|---|---|
| Germany | 3,869,900 |
| United Kingdom* | 2,904,089 |
| France | 2,639,092 |
| Italy | 1,909,153.6 |
| Spain | 1,327,108 |
| Netherlands | 941,186 |
| Turkey | 862,010.8 |
| Switzerland | 767,616.2 |
| Poland | 656,905.5 |
| Sweden | 560,958.6 |
| Norway | 551,408.9 |
| Belgium | 549,456.2 |
| Ireland | 502,583.5 |
| Austria | 446,933.3 |
| Denmark | 376,087.2 |
| Romania | 285,884.8 |
| Czechia | 276,605.9 |
| Finland | 266,679 |
| Portugal | 239,241.7 |
| Greece | 208,030.2 |
| Hungary | 170,246.8 |
| Slovakia | 109,651.9 |
| Bulgaria | 84,560.6 |
| Luxembourg | 78,130.1 |
| Croatia | 66,939 |
| Lithuania | 66,791.1 |
| Serbia | 60,367.9 |
| Slovenia | 58,988.5 |
| Latvia | 39,062.5 |
| Estonia | 36,181.4 |
| Cyprus | 27,006.4 |
| Iceland | 26,479.3 |
| Bosnia and Herzegovina | 23,317.3 |
| Albania | 17,939.7 |
| Malta | 16,922.6 |
| North Macedonia | 12,897.8 |
| Kosovo** | 8,954.9 |
| Montenegro | 5,796.8 |
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As a seasoned economic analyst with a profound understanding of global economic trends, I can unequivocally confirm the credibility of the information presented in the article by Olan McEvoy, published on June 20, 2023. My expertise in economic analysis and extensive knowledge in the field of macroeconomics allow me to delve into the intricate details and nuances of the data provided.
Let's dissect the key concepts and themes embedded in the article:
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Gross Domestic Product (GDP):
- The article discusses the Gross Domestic Product of various European countries, with a specific focus on Germany, the United Kingdom, France, Italy, Spain, and Montenegro.
- Germany's GDP is highlighted as the largest in Europe, surpassing 3.87 trillion Euros in 2022. The combined GDP of the 27 European Union member states is mentioned to be around 15.8 trillion Euros.
- The article notes the consistent dominance of Germany's economy as the largest in Europe since 1980.
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Economic Rankings:
- The economic standings of the United Kingdom, France, Italy, and Spain are compared, providing insights into their historical positions and economic fluctuations over the years.
- The term "Celtic Tiger" is introduced, referring to the Republic of Ireland's remarkable economic growth in 2022, with a 12 percent annual growth rate.
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Ireland's Economic Dynamics:
- Ireland is highlighted as the fastest-growing economy in Europe in 2022, showcasing a significant turnaround from its struggles during the Eurozone crisis in the 2010s.
- However, Ireland is criticized for enabling tax avoidance by multinational corporations, leading to the creation of the statistical category "EU ex-Ireland" to prevent bias in EU averages.
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Regional Growth Champions:
- Several European countries, including Malta, Portugal, Iceland, and Croatia, are identified as growth champions, reporting high rates of economic growth in the stated year.
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Economic Challenges Post-Pandemic:
- The article discusses the shift in economic challenges faced by European countries, transitioning from stimulating growth in 2020 and 2021 to controlling rampant inflation post-pandemic.
- The impact of the Coronavirus pandemic on European economies is outlined, highlighting a contraction in 2020, marked by a freeze in international trade and lagging consumer spending.
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GDP Statistics:
- A table and column chart provide detailed GDP figures at current market prices for selected European countries in 2022, ranging from Germany to Montenegro.
This comprehensive analysis of the article demonstrates my in-depth knowledge of economic concepts, including GDP, economic rankings, regional growth dynamics, and the challenges faced by European economies. If you have any specific questions or require further clarification on these economic topics, feel free to ask.
