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 - excluding the UK and 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 five 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 UK) 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, an incomplete single market in services, 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, and agreement with Mexico in April 2018 on updates to an existing free trade agreement.

GDP (purchasing power parity):
$20.85 trillion (2017 est.)
$20.38 trillion (2016 est.)
$19.98 trillion (2015 est.)
note: data are in 2017 dollars
[see also: GDP country ranks ]

GDP (official exchange rate):
$17.11 trillion (2017 est.)
[see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate:
2.3% (2017 est.)
2% (2016 est.)
2.3% (2015 est.)
[see also: GDP - real growth rate country ranks ]

GDP - per capita (PPP):
$40,900 (2017 est.)
$39,400 (2016 est.)
$38,200 (2015 est.)
note: data are in 2017 dollars
[see also: GDP - per capita country ranks ]

Gross national saving:
22.7% of GDP (2017 est.)
22.2% of GDP (2016 est.)
22% of GDP (2015 est.)
[see also: Gross national saving country ranks ]

GDP - composition, by end use:
household consumption: 54.4% (2016 est.)
[see also: GDP - composition, by end use - household consumption country ranks ]
government consumption: 20.4% (2016 est.)
[see also: GDP - composition, by end use - government consumption country ranks ]
investment in fixed capital: 19.8% (2016 est.)
[see also: GDP - composition, by end use - investment in fixed capital country ranks ]
investment in inventories: 0.4% (2016 est.)
[see also: GDP - composition, by end use - investment in inventories country ranks ]
exports of goods and services: 43.9% (2016 est.)
[see also: GDP - composition, by end use - exports of goods and services country ranks ]
imports of goods and services: -40.5% (2016 est.)
[see also: GDP - composition, by end use - imports of goods and services country ranks ]

GDP - composition, by sector of origin:
agriculture: 1.6% (2017 est.)
[see also: GDP - composition, by sector of origin - agriculture country ranks ]
industry: 25.1% (2017 est.)
[see also: GDP - composition, by sector of origin - industry country ranks ]
services: 70.9% (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:
3.5% (2017 est.)
[see also: Industrial production growth rate country ranks ]

Labor force:
238.9 million (2016 est.)
[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:
8.6% (2016 est.)
9.4% (2015 est.)
[see also: Unemployment rate country ranks ]

Population below poverty line:
9.8% (2013 est.)
note: see individual country entries of member states
[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%: 23.8% (2016 est.)
[see also: Household income or consumption by percentage share - highest 10% country ranks ]

Distribution of family income - Gini index:
30.8 (2016 est.)
31 (2015 est.)
[see also: Distribution of family income - Gini index country ranks ]

Taxes and other revenues:
45.2% (of GDP) (2014)
[see also: Taxes and other revenues country ranks ]

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

Public debt:
86.8% of GDP (2014)
85.5% of GDP (2013)
[see also: Public debt country ranks ]

Fiscal year:
NA

Inflation rate (consumer prices):
1.5% (2017 est.)
1.1% (2016 est.)
[see also: Inflation rate (consumer prices) country ranks ]

Central bank discount rate:
0% (31 December 2017 est.)
0% (31 December 2016 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
[see also: Central bank discount rate country ranks ]

Commercial bank prime lending rate:
0.25% (31 December 2017 est.)
0.25% (31 December 2016 est.)
[see also: Commercial bank prime lending rate country ranks ]

Stock of narrow money:
$8.775 trillion (31 December 2017 est.)
$13.13 trillion (31 December 2016 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
[see also: Stock of narrow money country ranks ]

Stock of broad money:
$8.138 trillion (31 December 2017 est.)
$12.62 trillion (31 December 2016 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
[see also: Stock of broad money country ranks ]

Stock of domestic credit:
$22.74 trillion (31 December 2016 est.)
$22.92 trillion (31 December 2015 est.)
note: this figure refers to the euro area only; it excludes credit data for non-euro-area members of the EU
[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.)
[see also: Market value of publicly traded shares country ranks ]

Current account balance:
$404.9 billion (2017 est.)
$359.7 billion (2016 est.)
[see also: Current account balance country ranks ]

Exports:
$1.929 trillion (2016 est.)
$1.985 trillion (2015 est.)
note: external exports, excluding intra-EU trade
[see also: Exports country ranks ]

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

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

Imports:
$1.895 trillion (2016 est.)
$1.92 trillion (2015 est.)
note: external imports, excluding intra-EU trade
[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
[see also: Reserves of foreign exchange and gold country ranks ]

Debt - external:
$29.27 trillion (31 December 2016 est.)
$28.68 trillion (31 December 2015 est.)
[see also: Debt - external country ranks ]

Stock of direct foreign investment - at home:
$6.938 trillion (31 December 2016 est.)
$6.482 trillion (31 December 2015 est.)
[see also: Stock of direct foreign investment - at home country ranks ]

Stock of direct foreign investment - abroad:
$8.411 trillion (31 December 2016 est.)
$7.649 trillion (31 December 2015 est.)
[see also: Stock of direct foreign investment - abroad country ranks ]

Exchange rates:
euros per US dollar -
0.885 (2017 est.)
0.903 (2016 est.)
0.9214 (2015 est.)
0.885 (2014 est.)
0.7634 (2013 est.)