Romania posted the largest increase in terms of gross domestic product (GDP) per capita in purchasing power standards (PPS) in 2017 among the 28 European Union member states and jumped one place in the bloc’s ranking, from the second-poorest nation to the third-poorest, with 63 percent of the EU average, according to Eurostat data released on Tuesday.
In 2016, Romania was considered at 58 percent of the EU average in terms of GDP per capita in PPS, the second-lowest level in EU, after Bulgaria (49 percent) , but below Croatia (60 percent), Latvia (65 percent), Hungary (67 percent), Greece and Poland (both 68 percent).
But after the impressive GDP growth rate recorded in 2017, of 6.9 percent, Romania jumped one place in the EU nations’ ranking, exceeding Croatia.
According to Eurostat, Romania, with 63 percent of EU average, ranks above Bulgaria (49 percent) and Croatia (61 percent), and approaches Latvia and Greece (both 67 percent), Hungary (68 percent) and Poland (70 percent).
EU’s wealthiest nations are Luxembourg (253 percent of EU average in 2017), Ireland (184 percent), the Netherlands and Austria (both 128 percent).
Ireland’s GDP is artificially increased following the relocation from outside the EU to Ireland of balance sheets of large multi-national enterprises in 2015.
The purchasing power standard (PPS) is an artificial currency unit that eliminates price level differences between countries, according to Eurostat.
EU’s statistical branch explains that one PPS buys the same volume of goods and services in all countries, allowing meaningful volume comparisons of economic indicators across countries.