Eurostat: Romania, the fastest economic growth in the European Union

The path has been marked by volatility, with periods of economic growth interrupted by stagnation or even recession, mainly due to the global financial crisis and the impact of the COVID-19 pandemic.

Looking at Eurostat’s timeline for the last 20 years, we see solid growth between 2004 and 2008. The global economic crisis brought a turning point, stalling income growth between 2008 and 2011, followed by actual declines in 2012 and 2013. Since 2014, the European economy has resumed its upward trend, interrupted again by the sharp contraction in 2020 caused by the pandemic. The year 2021 brought a rapid recovery, followed by a slower consolidation in 2022 and 2023, while preliminary data for 2024 indicate a new acceleration in growth.

The most impressive performance in the entire EU was recorded by Romania, where real household income per capita has exploded by 134% over the last two decades. In the ranking of the most dynamic economies, Romania is followed by:

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Lithuania: +95%
Poland: +91%
Malta: +90%.

These figures reflect an accelerated process of economic convergence for the countries of Central and Eastern Europe. Benefiting from foreign investment, the absorption of European funds, and robust economic growth, these countries have managed to close a significant part of the gap with Western countries.

At the opposite end of the spectrum, two Member States face a bleak reality, being the only ones to have recorded a decline in real incomes over the last 20 years:

Greece: –5%
Italy: –4%.

The effects of the sovereign debt crisis, combined with prolonged economic stagnation and various structural problems, have eroded the purchasing power of households in these two countries, placing them in a category unique in the EU.

Paradoxically, some of the richest and most stable European economies reported moderate progress over the same period:

Spain: +11%
Austria: +14%
Belgium: +15%
Luxembourg: +17%.

These slower increases do not indicate an economic problem, but rather the maturity of these markets. Starting from an already very high income level, the potential for accelerated growth is naturally lower.

The overall picture provided by Eurostat shows that living standards in the European Union have progressed despite successive economic shocks. However, the EU remains an area of contrasts. On the one hand, we see countries that have made spectacular leaps forward, reducing historical gaps. On the other hand, there are countries that have stagnated or even regressed economically.

Romania stands out as a success story of the last two decades, a clear leader in terms of income growth. This performance highlights the profound economic transformation the country has undergone, but also shows that the road to fully catching up with Western living standards is still a work in progress.