Cyprus GDP per inhabitant at 92% of EU average

GDP per inhabitant expressed in terms of purchasing power standards (PPS) in Cyprus was at 92% of the EU average while in Luxembourg it was more than two-and-a-half times the EU27 average in 2006, and in Ireland was nearly 50% above the average, according to Eurostat.

The Netherlands, Austria, Denmark, Sweden and Belgium were between around 20% and 30% above the average. The United Kingdom, Finland, Germany and France recorded figures between 10% and 20% above the EU27 average, while Spain, Italy and Greece were around the average.

Cyprus and Slovenia were about 10% below the EU27 average, while the Czech Republic, Malta and Portugal were between 20% and 25% below. Estonia, Hungary and Slovakia were about 35% below the average, while Lithuania, Latvia and Poland were between 40% and 50% below the average. Romania and Bulgaria were around 60% below the EU27 average.

These data for 2006, 20054 and 2004, published by Eurostat, the Statistical Office of the European Communities, are based on revised purchasing power parities5, and the latest GDP and population figures. They cover the 27 EU Member States, the three candidate countries, three EFTA countries and four Western Balkan countries.

GDP provides a measure of the total economic activity in a country. Most EU Member States have adapted their national accounts to comply with methodological improvements agreed upon internationally concerning the allocation of “financial intermediation services indirectly measured” (FISIM) to user sectors. The United Kingdom has not included the allocation of FISIM in its official GDP yet, and neither have Croatia, Turkey, the former Yugoslav Republic of Macedonia and the four Western-Balkan countries.

The GDP per inhabitant in Luxembourg is very high partly due to the large share of cross-border workers in total employment. While contributing to GDP, they are not taken into consideration as part of the resident population which is used to calculate GDP per inhabitant.

The Purchasing Power Standard (PPS) is an artificial reference currency unit that eliminates price level differences between countries. Thus one PPS buys the same volume of goods and services in all countries. This unit allows meaningful volume comparisons of economic indicators across countries. Aggregates expressed in PPS are derived by dividing aggregates in current prices and national currency by the respective Purchasing Power Parity (PPP). The level of uncertainty associated with the basic price and national accounts data, and the methods used for compiling PPPs imply that differences between countries that have indexes within a close range should not be over-interpreted.

The PPP data for 2005 have also been integrated into the International Comparison Program (ICP), which compares price levels and economic aggregates in real terms for some 150 countries. The worldwide results will be published at 15:00 CET on 17 December 2007 at www.worldbank.org/data/icp. The ICP uses GDP data from November 2007, and may differ from the latest data published by Eurostat.

The regular publication schedule of purchasing power parities includes four estimates for a particular year. The first estimate for 2006, based on projections, was published in News Release 90/2007 of 28 June 2007. This News Release corresponds to the second estimate.