GDP per capita is mainly an indicator of economic activity in a particular country.

In 2020, Sweden’s GDP per capita in PPS was 23 percent above the EU average. Luxembourg had by far the highest GDP per capita, at 163 percent above the EU average. This high figure is due, in part, to the large proportion of foreign workers in the country, who contribute to GDP, but are not included in the population statistics. The lowest figure recorded in this comparison was 45 percent below the EU average, in Bulgaria.

Purchasing power parities (PPP) are currency conversion rates that are applied in order to convert economic indicators from national currency to artificial common currency, called Purchasing Power Standard (PPS), which equalises the purchasing power of different national currencies and enables meaningful volume comparison between countries.

PPP is the ratio between the amount in the countries’ domestic currency that is needed to purchase the same basket of goods and services.

GDP is first calculated in the domestic currency and later converted with an artificial currency, Purchasing Power Standard (PPS). GDP per capita adjusted with purchasing power reflects the difference in volume in real terms between countries.

Actual Individual Consumption (AIC) refers to all goods and services that are actually consumed by individual households. In international comparisons, AIC is often preferred as an indicator of households’ material welfare.