Last year the Dutch gross domestic product (GDP) was 53,200 euros per capita, which places us fourth as a country within the European Union. This is evident from the new data from CBS. Luxembourg, Ireland and Denmark are in first, second and third place respectively. “But the numbers make things look better than they are,” says economist Edin Mujagić. “That’s why I think the Netherlands are clearly number one.”
“You know that feeling when you see someone finish fourth in a race? The difference between fourth place and bronze. This is the feeling you get when you look at data on gross domestic income per capita in all EU countries,” says Mujagić.
According to the economist, a single number does not say much about a country’s actual prosperity. Luxembourg’s GDP is inflated by the fact that almost every conceivable financial institution is there. And all the major tech companies, like Apple, are headquartered in Ireland.’ As a result, according to Mujagić, things look better than they really are. Much of Ireland’s and Luxembourg’s GDP does not reach the inhabitants at all.
‘Per capita GDP says nothing about the distribution of the pie’
Unfairly distributed
“What GDP per capita shows,” says Mujagić, “is how economies relate to each other.” When calculating per capita, it quickly becomes clear which economy is relatively larger and which is smaller. The list shows that the Dutch economy is large and therefore resilient. “This is an advantage. If we are faced with an external shock, such as gas prices and geopolitical tensions, it is much easier to absorb that shock and we can do it better.’
However, a GDP per capita of €53,200 does not mean that everyone in the Netherlands receives that amount annually. “It says nothing about the distribution of the pie. “We know that there are a lot of people in the Netherlands and that more and more people are gaining weight and it is very difficult for them to make ends meet.”
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
