21:47 20 April 2022
Poland richer than Portugal for the first time
In 2021, Poland's gross domestic product (GDP) per capita and expressed in purchasing power parity was higher than in Portugal for the first time, according to Eurostat data.
In 2021, Luxembourg and Ireland recorded the highest levels of GDP per capita, 277 percent and 221 percent of the EU average, respectively. Polish GDP per capita measured in PPP increased to the level of almost 77 percent of average, thus ahead of Portugal, where the indicator fell.
PPP tells us how many currency units a given amount of goods and services costs in different countries. The use of PPPs to convert expenditures denominated in national currencies into an artificial common currency – the Purchasing Power Standard (PPS) – eliminates the effect of differences in price levels across countries due to exchange rate fluctuations.
Purchasing power parities are obtained by comparing the price levels of a basket of comparable goods and services that are selected to be representative of consumption patterns in different countries.
