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The Economy of European Union

Economy

European Union's map

Economy - overview: Internally, the EU is attempting to lower trade barriers, adopt a common currency, and move toward convergence of living standards. Internationally, the EU aims to bolster Europe's trade position and its political and economic power. Because of the great differences in per capita income among member states (from $7,000 to $69,000) and historic national animosities, the EU faces difficulties in devising and enforcing common policies. For example, since 2003 Germany and France have flouted the member states' treaty obligation to prevent their national budgets from running more than a 3% deficit. In 2004 and 2007, the EU admitted 10 and two countries, respectively, that are, in general, less advanced technologically and economically than the other 15. Eleven established EU member states introduced the euro as their common currency on 1 January 1999 (Greece did so two years later), but the UK, Sweden, and Denmark chose not to participate. Of the 12 most recent member states, only Slovenia (1 January 2007) and Cyprus and Malta (1 January 2008) have adopted the euro; the remaining nine are legally required to adopt the currency upon meeting EU's fiscal and monetary convergence criteria.

GDP:

GDP - real growth rate: 1% (2008 est.) 3% (2007 est.) 3.3% (2006 est.)

GDP - per capita:

GDP - composition by sector: agriculture: 2% industry: 26.8% services: 71.1% (2008 est.)

Population below poverty line:

Household income or consumption by percentage share: lowest 10%: 2.8% highest 10%: 25.2% (2001 est.)

Distribution of family income - Gini index: 31 (2005 est.)

Inflation rate (consumer prices):

Labor force: 224.8 million (2008 est.)

Labor force - by occupation: agriculture: 5.6% industry: 27.7% services: 66.7% note: the remainder is in miscellaneous public and private sector industries and services (2007 est.)

Unemployment rate: 7.5% (2008 est.)

Budget:

Industries: among the world's largest and most technologically advanced, the European Union industrial base includes: ferrous and non-ferrous metal production and processing, metal products, petroleum, coal, cement, chemicals, pharmaceuticals, aerospace, rail transportation equipment, passenger and commercial vehicles, construction equipment, industrial equipment, shipbuilding, electrical power equipment, machine tools and automated manufacturing systems, electronics and telecommunications equipment, fishing, food and beverage processing, furniture, paper, textiles, tourism

Industrial production growth rate: -0.4% (2008 est.)

Electricity - production: 3.103 trillion kWh (2007 est.)

Electricity - production by source:

Electricity - consumption: 2.926 trillion kWh (2007 est.)

Electricity - exports: NA kWh

Electricity - imports: NA kWh

Oil - production: 2.676 million bbl/day (2007 est.)

Oil - consumption: 14.38 million bbl/day (2007 est.)

Oil - exports: 2.196 million bbl/day (2007 est.)

Oil - imports: 8.613 million bbl/day (2007 est.)

Oil - proved reserves: 6.146 billion bbl (1 January 2008)

Natural gas - production: 197.8 billion cu m (2007 est.)

Natural gas - consumption: 497.3 billion cu m (2007 est.)

Natural gas - exports: NA cu m

Natural gas - imports: NA cu m

Natural gas - proved reserves: 2.476 trillion cu m (1 January 2008 est.)

Agriculture - products: wheat, barley, oilseeds, sugar beets, wine, grapes; dairy products, cattle, sheep, pigs, poultry; fish

Exports: $1.952 trillion; note - external exports, excluding intra-EU trade (2007)

Exports - commodities: machinery, motor vehicles, aircraft, plastics, pharmaceuticals and other chemicals, fuels, iron and steel, nonferrous metals, wood pulp and paper products, textiles, meat, dairy products, fish, alcoholic beverages.

Exports - partners:

Imports: $1.69 trillion f.o.b.; note - external imports, excluding intra-EU trade (2007)

Imports - commodities: machinery, vehicles, aircraft, plastics, crude oil, chemicals, textiles, metals, foodstuffs, clothing

Imports - partners:

Debt - external:

Economic aid - recipient:

Currency:

Currency code:

Exchange rates: euros per US dollar - 0.6827 (2008 est.), 0.7345 (2007), 0.7964 (2006), 0.8041 (2005), 0.8054 (2004)

Fiscal year: