An IMGW News Report
Mississippi, the poorest state in the United States, is edging closer to Germany’s GDP per capita, with a gap of just €1,500. Among Europe’s top five economies, only Germany surpasses Mississippi, highlighting the stark contrast in economic performance.
Using 2024 data from the IMF and the US Bureau of Economic Analysis (BEA), Mississippi’s GDP per capita, adjusted for Purchasing Power Parity (PPP), reached €49,780. Meanwhile, Germany led Europe with €51,304, followed by the UK (€48,441), France (€44,365), Italy (€37,227), and Spain (€33,070). The US as a whole outpaces all EU countries except Luxembourg and Ireland, which are outliers due to unique factors like multinational tax planning.
Economic disparities within the United States are also apparent when considering poverty levels. According to the U.S. Census Bureau, the national poverty rate rose to 12.7% in 2023, up from 12.4% in 2022. Several states and territories report significantly higher poverty rates, including Puerto Rico, Louisiana, Mississippi, New Mexico, West Virginia, Kentucky, Oklahoma, Arkansas, New York, and Tennessee.
At the lower end of US state rankings for GDP per capita, West Virginia, Arkansas, Alabama, and South Carolina followed Mississippi, with figures ranging from €56,554 to €59,375. In contrast, the EU’s 2024 GDP per capita ranged from €15,773 in Bulgaria to €125,043 in Luxembourg, with an average of €40,060.
The disparities deepen when adjusted for PPP, which accounts for price level differences. Under these adjustments, Mississippi’s cost of living, 12.7% lower than the US average, further elevates its relative GDP performance.
While Germany’s GDP per capita rises to $70,930 in PPP terms, it still lags behind the US average of $86,601. Mississippi’s adjusted figure approaches $60,714, keeping it above the EU average but slightly below Germany.
Luxembourg and Ireland remain exceptional cases due to foreign worker contributions and tax-driven distortions. Experts highlight GDP per capita, particularly adjusted for PPP, as a fairer measure for comparing economic performance across nations. Despite its challenges, Mississippi’s economic performance underscores the remarkable economic variance between the US and Europe.
