Poland tops the region as living standards continue to catch up

This article is a part of Poland Unpacked. Weekly intelligence for decision-makers

Last week Eurostat published updated data on GDP per capita in purchasing power standards (PPS) across the EU for 2025, along with new figures on actual individual consumption (AIC). For several years, however, the EU statistical office has pointed out that AIC is the better indicator for assessing living standards.

To recap, GDP measures the value of output produced in a given country. AIC, by contrast, provides a more accurate picture of actual prosperity because it includes all goods and services consumed by households, regardless of whether they were purchased directly on the market or financed by the state or non-profit organizations.

This is particularly relevant for public services – above all healthcare and education – which, in countries where the state plays a stronger role, significantly raise the level of actual consumption even though they do not directly increase household incomes. In the remainder of this analysis, AIC will be referred to simply as “consumption”, although it should be remembered that this is not identical to consumption as defined in national accounts.

As for GDP per capita, there are only minor differences compared with the figures we analyzed following the European Commission’s autumn forecast. According to the latest data, Poland has overtaken both Portugal and Estonia on this measure in 2025. The revisions amount to no more than 1 percentage point of the EU average and affect fewer than half of the member states. Poland’s relative position therefore remains unchanged compared with the previous analysis.

Poland emerges as the region’s standalone leader

The chart referenced in the title compares actual individual consumption (AIC) in 2024 and 2025, expressed as a percentage of the EU average. The country that recorded the strongest increase over this period is Bulgaria (up 4 percentage points). Poland ranks second, where AIC rose from 85% of the EU average to 88%.

As a result, in 2025 Poland has “overtaken” as many as four countries: Portugal, Romania and Slovenia (each at 86% of the EU average), as well as Lithuania (87%). This makes Poland the standalone leader in terms of prosperity in the region. It has also drawn level with Malta.

The largest declines (down 2 percentage points) were recorded in Malta, as well as in France, Italy and Finland. Poland has also moved closer to Spain, where AIC stands at 92% of the EU average.

A decade of change

The chart below illustrates changes in the actual individual consumption (AIC) indicator over the past decade across EU member states. The relationship is relatively straightforward and reflects the convergence of Central and Eastern European countries towards the “old” EU member states.

In addition, the largest gains were recorded by the countries that most recently joined the Union: Bulgaria, Romania, and Croatia. Poland, meanwhile, posted the most significant progress among the countries that acceded to the EU in 2004. The number of “old EU” member states that managed to increase their consumption level relative to the EU average can be counted on one hand.