Bulgaria Has Seen the Greatest Improvement in Living Standards in the EU

Bulgaria is the European Union country with the fastest-rising standard of living in 2025. Eurostat data on purchasing power parity (PPP) show that the country has climbed by 4 ppt in one year to 77% of the European Union average.

This jump not only permanently lifts the country out of last place on this indicator – where it had been until a few years ago – but also redraws the map of prosperity in Eastern Europe. For the first time Bulgaria is on par with Slovakia (77%) and officially surpasses three member states: Hungary (73%), Latvia (73%) and Estonia (74%).

The improvement in PPS – an indicator that allows us to compare the real standard of living across different countries by accounting for differences in the prices of goods and services – is primarily linked to steady income growth in recent years, which has been significantly above the European average. At the same time prices of goods and services, although also rising rapidly, still lag behind those in Europe. And this situation automatically affects purchasing power parity.

What is the standard in the EU?

Eurostat data once again confirm Luxembourg’s absolute dominance in terms of standard of living. The Grand Duchy has a purchasing power parity of 145% of the European Union average. The country has held the top spot for decades.

Once again as is traditional Norway ranks second with 128% of the EU average. The country is rich in oil and gas, and it reinvests the proceeds through its sovereign wealth fund, which manages assets worth approximately €2 trillion.

The Scandinavian countries and the Benelux nations traditionally perform well in terms of purchasing power parity (PPP) due to high wages, stable prices and relatively small populations.

The fastest improvement in living standards after Bulgaria is reported in Poland – an increase of 4 ppt over the year to 88% of the EU average. The Polish economy grew last year to an impressive $1 trillion, ranking it fifth in the EU by this measure.

At the opposite end of the spectrum are France and Italy, where the standard of living declined by 2 ppts each.

Translated with DeepL.