Economic growth

Date: 2015-10-07; view: 516.

Population and GDP per capita of EU member states and some candidates.

GDP per capita in 2008 2009

>30,000 ?

>25,000 ?

>20,000 ?

>15,000 ?

>10,000 ?

The EU's share of Gross world product (GWP) is stable at around one fifth.

The twelve new member states of the European Union have enjoyed a higher average percentage growth rate than their elder members of the EU. Slovakia has the highest GDP growth in the period 2005–2011 among all countries of the European Union. Notably the Baltic states have achieved massive GDP growth, with Latvia topping 11%, close to China, the world leader at 9% on average for the past 25 years (though these gains have been in great part cancelled by the late-2000's recession).

Reasons for this massive growth include government commitments to stable monetary policy, export-oriented trade policies, lowflat-tax rates and the utilisation of relatively cheap labour. For the last year (2011), Estonia had the highest GDP growth from all the states in EU (7,6%). The current map of EU growth is one of huge regional variation, with the larger economies suffering from stagnant growth and the new nations enjoying sustained, robust economic growth.

Although EU27 GDP is on the increase, the percentage of Gross world product is decreasing due to the emergence of economic powers such as China, India and Brazil. In the medium to long term, the EU will be looking forward to increase GDP growth in Italy and the UK to stabilise growth in European Union states. This is to ensure sustained economic prosperity.

EU Member States GDP growth rates Member State 2005 – 2012 Austria 2.4 3.7 3.7 1.4 −3.8 2.1 2.7 0.8 9,5 Belgium 1.7 2.7 2.9 1.0 −2.8 2.4 1.8 −0.2 9,8 Bulgaria 6.4 6.5 6.4 6.2 −5.5 0.4 1.8 0.8 24,5 Cyprus 3.9 4.1 5.1 3.6 −1.9 1.3 0.5 −2.4 14,7 Czech Republic 6.8 7.0 5.7 3.1 −4.5 2.5 1.9 −1.3 22,6 Denmark 2.4 3.4 1.6 −0.8 −5.7 1.6 1.1 −0.6 3,0 Estonia 8.9 10.1 7.5 -4.2 −14.1 3.3 8.3 3.2 22,5 Finland 2.9 4.4 5.3 0.3 −8.5 3.3 2.8 −0.2 10,0 France 1.9 2.7 2.3 −0.1 −3.1 1.7 1.7 0.0 7,2 Germany 0.7 3.7 3.3 1.1 −5.1 4.2 3.0 0.7 11,9 Greece 2.3 5.5 3.5 −0.2 −3.1 -4.9 -7.1 -6.4 -10,6 Hungary 4.0 3.9 0.1 0.9 −6.8 1.3 1.6 −1.7 2,9 Ireland 5.9 5.4 5.4 −2.1 −5.5 −0.8 1.4 0.7 10,2 Italy 0.9 2.2 1.7 −1.2 −5.5 1.8 0.4 −2.4 -1,3 Latvia 10.1 11.2 9.6 −3.3 -17.7 −0.9 5.5 5.6 17,9 Lithuania 7.8 7.8 9.8 2.9 −14.8 1.5 5.9 3.6 24,6 Luxembourg 5.3 4.9 6.6 −0.7 −4.1 2.9 1.7 0.2 17,6 Malta 3.6 2.6 4.1 3.9 −2.6 2.9 1.7 0.8 17,8 Netherlands 2.0 3.4 3.9 1.8 −3.7 1.6 1.0 −0.9 9,2 Poland 3.6 6.2 6.8 5.1 1.6 3.9 4.3 2.0 38,7 Portugal 0.8 1.4 2.4 0.0 −2.9 1.9 −1.6 −3.2 -1,4 Romania 4.2 7.9 6.3 7.3 −6.6 −1.1 2.2 0.3 21,4 Spain 3.6 4.1 3.5 0.9 −3.7 −0.3 0.4 −1.4 7,0 Slovakia 6.7 8.3 10.5 5.8 −4.9 4.4 3.2 2.0 41,2 Slovenia 4.0 5.8 7.0 3.4 −7.8 1.2 0.6 −2.3 20,1 Sweden 3.2 4.3 3.3 −0.6 −5.0 6.6 3.7 0.8 17,0 United Kingdom 2.8 2.6 3.6 −1.0 −4.0 1.8 0.9 0.2 6,9 European Union 2.1 3.3 3.2 0.3 −4.3 2.1 1.5 −0.3 8,0 Eurozone 1.7 3.2 3.0 0.4 −4.4 2.0 1.4 −0.6 6,7

European Union is the largest exporter in the world and as of 2008 the largest importer of goods and services. Internal trade between the member states is aided by the removal of barriers to trade such as tariffs andborder controls. In the eurozone, trade is helped by not having any currency differences to deal with amongst most members.

The European Union Association Agreement does something similar for a much larger range of countries, partly as a so-called soft approach ('a carrot instead of a stick') to influence the politics in those countries. The European Union represents all its members at the World Trade Organization (WTO), and acts on behalf of member states in any disputes. When the EU negotiates trade related agreement outside the WTO framework, the subsequent agreement must be approved by each individual EU member.

Main trading partners(2011)

Rank Partners Imports (million euro) % (of total) Exports (million euro) % (of total) Total trade (million euro) % (of total) - Total EU 1.685.398 100% 1.531.358 100% 3.216.756 100% United States 184,245.6 10,9% 260,553.4 17.0% 444,799.0 13,8% China 292,129.6 17,3% 136,222.3 8,9% 428,351.9 13,3% Russia 198,342.6 11,8% 108,434.0 7,1% 306,776.6 9,5% Switzerland 91,205.4 5.4% 121,671.5 7.9% 212,876.9 6.6% Norway 93,449.8 5.5% 46,529.0 3.0% 139,978.8 4.4% Turkey 47,592.7 2,8% 72,670.9 4.7% 120,263.6 3.7% Japan 67,451.7 4.0% 48,967.5 3,2% 116,419.2 3.6% India 39,314.7 2.3% 40,425.1 2,6% 79,739.8 2.5% Brazil 37,776.0 2,2% 35,728.6 2,3% 73,504.6 2,3% South Korea 36,100.7 2,1% 32,417.2 2,1% 68,517.8 2,1% Saudi Arabia 28,122.6 1.7% 26,395.1 1,7% 54,517.7 1,7% Canada 22,862.3 1,4% 29,609.1 1,9% 52,471.4 1,6% Singapore 18,941.5 1,1% 27,131.3 1,8% 46,072.8 1,4% Algeria 27,678.4 1,6% 17,205.4 1,1% 44,883.8 1,4% South Africa 17,785.0 1,1% 25,634.2 1,7% 43,419.1 1,3% Australia 11,761.9 0,7% 30,805.7 2,0% 42,567.6 1,3% United Arab Emirates 8,775.7 0,5% 32,614.8 2,1% 41,390.5 1,3% Hong Kong 10,133.5 0,6% 30,188.0 2,0% 40,321.5 1,3% Taiwan 23,946.8 1,4% 16,213.4 1,1% 40,160.3 1,2% Mexico 16,270.4 1,0% 23,802.4 1,6% 40,072.8 1,2% Nigeria 24,147.4 1,4% 12,471.9 0,8% 36,619.3 1,1% Ukraine 14,987.5 0,9% 21,196.4 1,4% 36,183.9 1,1% Malaysia 21,004.0 1,2% 11,914.9 0,8% 32,918.9 1,0% Israel 12,645.0 0,8% 16,835.6 1,1% 29,480.7 0,9% Thailand 17,534.6 1,0% 11,858.4 0,8% 29,393.0 0,9% Kazakhstan 22,725.2 1,3% 5,999.5 0,4% 28,724.7 0,9% Iran 16,340.8 1,0% 10,488.4 0,7% 26,829.3 0,8% Morocco 8,688.8 0,5% 15,167.7 1,0% 23,856.4 0,7% Indonesia 16,149.5 1,0% 7,349.8 0,5% 23,499.4 0,7% Egypt 9,510.7 0,6% 13,943.7 0,9% 23,454.4 0,7% Tunisia 9,874.1 0,6% 10,930.9 0,7% 20,804.9 0,6% Argentina 10,656.7 0,6% 8,320.0 0,5% 18,976.8 0,6% Chile 10,869.7 0,6% 7,651.3 0,5% 18,521.0 0,6% Qatar 13,321.4 0,8% 4,885.4 0,3% 18,206.8 0,6% Vietnam 12,801.4 0,8% 5,209.3 0,3% 18,010.7 0,6% Azerbaijan 14,841.9 0,9% 2,862.4 0,2% 17,704.3 0,6% Croatia 5,604.2 0,3% 11,300.7 0,7% 16,904.9 0,5% Iraq 9,469.6 0,6% 3,883.5 0,3% 13,353.1 0,4% Serbia 4,716.0 0,3% 8,486.1 0,6% 13,202.1 0,4% Libya 10,437.1 0,6% 2,066.1 0,1% 12,503.2 0,4% Colombia 6,897.8 0,4% 4,986.1 0,3% 11,883.9 0,4% Angola 6,651.3 0,4% 4,853.4 0,3% 11,504.7 0,4% Belarus 4,220.2 0,3% 7,218.3 0,5% 11,438.5 0,4% Bangladesh 8,585.4 0,5% 1,701.7 0,1% 10,287.1 0,3% Peru 6,342.2 0,4% 2,808.6 0,2% 9,150.7 0,3% Philippines 5,111.4 0,3% 3,978.8 0,3% 9,090.2 0,3% Venezuela 4,086.4 0,2% 4,886.1 0,3% 8,972.5 0,3% Kuwait 4,797.2 0,3% 3,706.7 0,2% 8,503.9 0,3% Pakistan 4,569.3 0,3% 3,740.6 0,2% 8,310.0 0,3% Gibraltar 217.5 0,0% 7,889.9 0,5% 8,107.4 0,3%

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