Economy - overview:
The 28 member states that make up the EU have adopted an internal single market with free movement of goods, services, capital, and labor. The EU, which is also a customs union, aims to bolster Europe's trade position and its political and economic weight in international affairs.Despite great differences in per capita income among member states (from $28,000 to $109,000) and in national attitudes toward issues like inflation, debt, and foreign trade, the EU has achieved a high degree of coordination of monetary and fiscal policies. A common currency – the euro – circulates among 19 of the member states that make up the European Economic and Monetary Union (EMU). Eleven member states introduced the euro as their common currency on 1 January 1999 (Greece did so two years later). Since 2004, 13 states acceded to the EU. Of the 13, Slovenia (2007), Cyprus and Malta (2008), Slovakia (2009), Estonia (2011), Latvia (2014), and Lithuania (2015) have adopted the euro; 7 other member states - not including the UK nor Denmark, which have formal opt-outs - are required by EU treaties to adopt the common currency upon meeting fiscal and monetary convergence criteria.The EU economy posted moderate GDP growth for 2014 through 2017, capping 5 years of sustained growth since the 2008-09 global economic crisis and the ensuing sovereign debt crisis in the euro zone in 2011. However, the bloc’s recovery has been uneven. Some EU member states (Czechia, Ireland, Malta, Romania, Sweden, and Spain) have recorded strong growth, others (Italy and the United Kingdom) are experiencing modest expansion and some (Greece) have only recently shaken off recession. Only Greece remains under an EU rescue program (due to end in August 2018), while Cyprus, Ireland, Portugal, and Spain have successfully concluded their agreements. Overall, the EU’s recovery has been buoyed by lower commodities prices and accommodative monetary policy, which has lowered interest rates and stimulated demand. The euro-zone, which makes up about 70% of the total EU economy, is also performing well, achieving a growth rate not seen in a decade. In October 2017 the European Central Bank (ECB) announced it would extend its bond-buying program through September 2018, and possibly beyond that date, to keep the euro-zone recovery on track. The ECB’s efforts to spur more lending and investment through its asset-buying program, negative interest rates, and long-term loan refinancing programs have not yet raised inflation in line with the ECB’s statutory target of just under 2%.Despite its performance, high unemployment in some member states, high levels of public and private debt, muted productivity, and an aging population remain sources of potential drag on the EU’s future growth. Moreover, the EU economy remains vulnerable to a slowdown of global trade and bouts of political and financial turmoil. In June 2016, the UK voted to withdraw from the EU, the first member country ever to attempt to secede. Continued uncertainty about the implications of the UK’s exit from the EU (set for March 2019) could hurt consumer and investor confidence and dampen EU growth, particularly if trade and cross-border investment significantly declines. Political disagreements between EU member states on reforms to fiscal and economic policy also may impair the EU’s ability to bolster its crisis-prevention and resolution mechanisms. International investors’ fears of a broad dissolution of the single currency area have largely dissipated, but these concerns could resurface if elected leaders implement policies that contravene euro-zone budget or banking rules. State interventions in ailing banks, including rescue of banks in Italy and resolution of banks in Spain, have eased financial vulnerabilities in the European banking sector even though some banks are struggling with low profitability and a large stock of bad loans, fragilities that could precipitate localized crises. Externally, the EU has continued to pursue comprehensive free trade agreements to expand EU external market share, particularly with Asian countries; EU and Japanese leaders reached a political-level agreement on a free trade agreement in July 2017.

GDP (purchasing power parity):
$19.97 trillion (2016 est.) $19.6 trillion (2015 est.) $18.91 trillion (2014 est.)
note: data are in 2017 dollars
country comparison to the world: 2

GDP (official exchange rate):
$16.52 trillion (2016 est.)
[see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate:
1.9% (2016 est.) 2.3% (2015 est.) 1.6% (2014 est.)
country comparison to the world: 160
[see also: GDP - real growth rate country ranks ]

GDP - per capita (PPP):
$39,200 (2016 est.) $38,100 (2015 est.) $37,000 (2014 est.)
note: data are in 2017 dollars
country comparison to the world: 46

Gross national saving:
22% of GDP (2016 est.) 21.8% of GDP (2015 est.) 21.3% of GDP (2014 est.)
country comparison to the world: 75
[see also: Gross national saving country ranks ]

GDP - composition, by end use:
household consumption: 56.3%
[see also: GDP - composition, by end use - household consumption country ranks ]
government consumption: 20.5%
[see also: GDP - composition, by end use - government consumption country ranks ]
investment in fixed capital: 19.5%
[see also: GDP - composition, by end use - investment in fixed capital country ranks ]
investment in inventories: 0.1%
[see also: GDP - composition, by end use - investment in inventories country ranks ]
exports of goods and services: 43.9%
[see also: GDP - composition, by end use - exports of goods and services country ranks ]
imports of goods and services: -40.5% (2015 est.)
[see also: GDP - composition, by end use - imports of goods and services country ranks ]

GDP - composition, by sector of origin:
agriculture: 1.6%
[see also: GDP - composition, by sector of origin - agriculture country ranks ]
industry: 25.6%
[see also: GDP - composition, by sector of origin - industry country ranks ]
services: 74% (2017 est.)
[see also: GDP - composition, by sector of origin - services country ranks ]

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

Industries:
among the world's largest and most technologically advanced regions, the EU 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 beverages, furniture, paper, textiles

Industrial production growth rate:
1.8% (2017 est.)
country comparison to the world: 143
[see also: Industrial production growth rate country ranks ]

Labor force:
234.7 million (2017 est.)
country comparison to the world: 3
[see also: Labor force country ranks ]

Labor force - by occupation:
agriculture: 5%
[see also: Labor force - by occupation - agriculture country ranks ]
industry: 21.9%
[see also: Labor force - by occupation - industry country ranks ]
services: 73.1% (2014 est.)
[see also: Labor force - by occupation - services country ranks ]

Unemployment rate:
9.4% (2015 est.) 10.2% (2014 est.)
country comparison to the world: 130
[see also: Unemployment rate country ranks ]

Population below poverty line:
9.8%
note: see individual country entries of member states (2013 est.)
[see also: Population below poverty line country ranks ]

Household income or consumption by percentage share:
lowest 10%: 2.8%
[see also: Household income or consumption by percentage share - lowest 10% country ranks ]
highest 10%: 24.1% (2015 est.)

Distribution of family income - Gini index:
31 (2015 est.) 30.9 (2014 est.)
country comparison to the world: 120
[see also: Distribution of family income - Gini index country ranks ]

Taxes and other revenues:
45.2% of GDP (2014)
country comparison to the world: 22
[see also: Taxes and other revenues country ranks ]

Budget surplus (+) or deficit (-):
-3% of GDP (2014)
country comparison to the world: 113
[see also: Budget surplus (+) or deficit (-) country ranks ]

Public debt:
86.8% of GDP (2014) 85.5% of GDP (2013)
country comparison to the world: 30
[see also: Public debt country ranks ]

Fiscal year:
NA

Inflation rate (consumer prices):
0.1% (2015 est.) 0.5% (2014 est.)
country comparison to the world: 11
[see also: Inflation rate (consumer prices) country ranks ]

Central bank discount rate:
0.25% (31 December 2016 est.) 0.3% (31 December 2015 est.)
note: this is the European Central Bank's rate on the marginal lending facility, which offers overnight credit to banks in the euro area
country comparison to the world: 143
[see also: Central bank discount rate country ranks ]

Commercial bank prime lending rate:
0.32% (31 December 2014 est.) 0.56% (31 December 2013 est.)
country comparison to the world: 187
[see also: Commercial bank prime lending rate country ranks ]

Stock of narrow money:
$6.613 trillion (31 December 2015 est.) $5.947 trillion (31 December 2014 est.)
note: this is the quantity of money, M1, for the euro area, converted into US dollars at the exchange rate for the date indicated; it excludes the stock of money carried by non-euro-area members of the European Union, e.g., UK pounds, Danish kroner, and Czech koruny
country comparison to the world: 2
[see also: Stock of narrow money country ranks ]

Stock of broad money:
$10.84 trillion (31 December 2015 est.) $10.33 trillion (31 December 2014 est.)
note: this is the quantity of broad money for the euro area, converted into US dollars at the exchange rate for the date indicated; it excludes the stock of broad money carried by non-euro-area members of the European Union
country comparison to the world: 3
[see also: Stock of broad money country ranks ]

Stock of domestic credit:
$16.57 trillion (31 December 2015 est.) $17.12 trillion (31 December 2014 est.)
note: this figure refers to the euro area only; it excludes credit data for non-euro-area members of the EU
country comparison to the world: 3
[see also: Stock of domestic credit country ranks ]

Market value of publicly traded shares:
$7.185 trillion (31 December 2014 est.) $7.932 trillion (31 December 2013 est.) $10.4 trillion (31 December 2012 est.)
country comparison to the world: 3
[see also: Market value of publicly traded shares country ranks ]

Current account balance:
$387.1 billion (2016 est.) $365.5 billion (2015 est.)
country comparison to the world: 1
[see also: Current account balance country ranks ]

Exports:
$1.9 trillion (2015 est.) $1.808 trillion (2014 est.)
note: external exports, excluding intra-EU trade
country comparison to the world: 2
[see also: Exports country ranks ]

Exports - commodities:
machinery, motor vehicles, pharmaceuticals and other chemicals, fuels, aircraft, plastics, iron and steel, wood pulp and paper products, alcoholic beverages, furniture

Exports - partners:
United States 20.7%, China 9.6%, Switzerland 8.1%, Turkey 4.4%, Russia 4.1% (2016 est.)

Imports:
$1.727 trillion (2015 est.) $1.692 trillion (2014 est.)
note: external imports, excluding intra-EU trade
country comparison to the world: 3
[see also: Imports country ranks ]

Imports - commodities:
fuels and crude oil, machinery, vehicles, pharmaceuticals and other chemicals, precious gemstones, textiles, aircraft, plastics, metals, ships

Imports - partners:
China 20.1%, United States 14.5%, Switzerland 7.1%, Russia 6.3% (2016 est.)

Reserves of foreign exchange and gold:
$740.9 billion (31 December 2014 est.) $746.9 billion (31 December 2013)
note: data are for the European Central Bank
country comparison to the world: 3
[see also: Reserves of foreign exchange and gold country ranks ]

Debt - external:
$13.05 trillion (31 December 2014 est.) $14.14 trillion (31 December 2013)
country comparison to the world: 2
[see also: Debt - external country ranks ]

Stock of direct foreign investment - at home:
$5.148 trillion (2012) $4.828 trillion (2011)
country comparison to the world: 1
[see also: Stock of direct foreign investment - at home country ranks ]

Stock of direct foreign investment - abroad:
$9.121 trillion (2012) $8.721 trillion (2011)
country comparison to the world: 1
[see also: Stock of direct foreign investment - abroad country ranks ]

Exchange rates:
euros per US dollar - 0.906 (2017 est.) 0.9214 (2016 est.) 0.9214 (2015 est.) 0.885 (2014 est.) 0.7634 (2013 est.)