Europe’s mixed economic messages

Simon Tilford of the Centre for European Reform examines the Visegrad four (Poland, the Czech Republic, Slovakia and Hungary) and finds that, economically speaking, all is not well. He points out that while economic production (gross domestic output) has caught up impressively with western Europe, incomes have converged less. The four countries’ GDP per capita ranges from 64 per cent to 82 per cent of the eurozone average; but labour income is only at 50 per cent to 59 per cent. Consumption growth has also lagged behind GDP growth. Tilford writes that much of the increased value added has been captured by the owners of capital, who as a result of large investment inflows from abroad are disproportionately foreign.