Luxembourg tops the European actual individual consumption (AIC) ranking

According to Eurostat figures, consumption levels in Luxembourg are 32% above the EU average

Consommation individuelle effectiveThe Eurostat indicator for actual individual consumption (AIC) confirms that Luxembourg is way out in front in the European ranking. The level of actual individual consumption per capita in the small country at the centre of the European Union (EU) stands at 132% of the EU average.

Luxembourg in the lead for AIC

AIC is an indicator of the material welfare of households. Based on preliminary estimations for 2016, AIC per capita, expressed in purchasing power standards (PPS), varied in the EU Member States from 53% to 132% of the EU average. Ten Member States recorded AIC per capita above the EU average in 2016.

Luxembourg leads the ranking, with a figure of 132% of the EU average. Germany and Austria come in second and third place, approximately 20% above the EU average, followed by the United Kingdom, Denmark, Finland and Belgium, with figures between 10% and 15% above the average.

Cross-border workers contribute to high GDP

The figures for gross domestic product (GDP) per capita, a measure of economic activity, also reveal huge differences between the EU Member States. In 2016, GDP per capita, expressed in PPS, ranged from 48% of the EU average in Bulgaria to 267% in Luxembourg.

According to Eurostat, the high level of GDP per capita in Luxembourg can partly be explained by the high proportion of cross-border workers in the overall workforce. Although these workers contribute to GDP, they are not considered as part of the resident population, which is used to calculate GDP per capita.

Some 174,000 cross-border workers from Germany, France and Belgium earn their living in Luxembourg. This figure reflects the good working conditions and especially the wage levels of cross-border workers in Luxembourg. The average annual salary of cross-border workers entering the country varies significantly depending on their country of origin. According to a STATEC study dating from May 2015, French cross-border workers earn an average of €44,879 per year, compared to €55,701 for Belgian cross-border workers and €52,197 for German cross-border workers.

(Source: Eurostat/Statec)

  • Updated 03-07-2017