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Montenegro’s purchasing power standard is the highest in the region

Gross domestic product per capita according to purchasing power standard last year amounted to 48% of the EU average, Statistics Administration Monstat released.

The data is result of the joint research carried out by statistical institutes of the EU Member States and candidates and potential membership candidates.

Purchasing power standard (PPS) is a unit for which the same amount of goods and service is bought in every state. As representatives of Monstat said, this indicator is used for special comparison of the GDP amount and economic well-being of a state.

“According to the methodology of the research, amount of GDP per capita expressed in PPS units is mostly influenced by GDP amount calculated by expenditure method, level of consumer prices and population.

Eurostat data indicates that among candidate countries, Montenegro has the highest GDP per inhabitant. It is followed by Serbia, North Macedonia, Albania and Bosnia and Herzegovina.

Among EU Member States, the highest GDP has been recorded in Luxembourg (261% of the European average). Bulgaria has the lowest GDP, with only 51% of the European average.

Real individual consumption per capita among Member States ranged from 56% to 134% of the EU average last year.

Final Eurostat data shows that PPS ranges from 39% to 58% of the EU average in the candidate countries and potential candidates for the EU membership. Among region countries, that indicator is the highest in Montenegro and amounts to 58%.

“Whereas GDP per capita usually shows the level of economic activity, real individual consumption per capita is an alternative indicator and describes further material well-being of every household”, explained Monstat representatives.

 

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