Mississippi’s GDP Rivals Europe’s Top Economies

Mississippi, the poorest U.S. state, is closing the gap with Europe’s largest economy, Germany, in terms of GDP per capita. As of Q3 2024, Mississippi’s GDP per capita stands at €49,780, just €1,524 lower than Germany’s €51,304. This positions Mississippi ahead of major European economies like France, the UK, Italy, and Spain, highlighting the shifting economic landscape within both the U.S. and Europe.

GDP Comparison: U.S. vs. EU

In 2024, U.S. GDP per capita averages €80,023, a stark contrast to the EU’s average of €40,060. While Luxembourg and Ireland lead in Europe with GDP per capita significantly above the EU average, Mississippi surpasses all other major European economies, including Spain (€33,070), France (€44,365), and Italy (€37,227). Notably, Mississippi’s GDP per capita exceeds that of the UK (€48,441), and is close to France (€44,365) and Italy (€37,227).

The Impact of PPP Adjustments

When adjusted for purchasing power parity (PPP), U.S. GDP per capita increases to $86,601, far higher than the EU’s $62,660. This adjustment reflects cost-of-living differences, particularly in states like Mississippi, where living costs are 12.7% lower than the national average. Under PPP, Mississippi’s GDP would still surpass Spain’s, while Germany’s GDP rises from €51,304 to €70,930, reducing the economic gap with the U.S.

Why Luxembourg and Ireland Stand Out

Luxembourg and Ireland’s exceptional GDP per capita figures are largely attributed to external factors. Luxembourg’s high GDP is partly due to a large foreign workforce contributing to the country’s economic output, while Ireland’s figures are inflated by tax practices of U.S. multinational corporations, making these countries economic outliers in Europe.