European GDP vs US: The secret of the economic gap, with a surprising comparison to Mississippi
Have you ever watched the economic news and wondered, "When will my country join the ranks of the truly developed nations?" Today we have an exciting topic to satisfy your curiosity. We're going to compare the GDP of Europe with the per capita income of the US state of Mississippi!
"Wait, you're comparing the whole of Europe to a single state in the US?" Yes, that's right! Surprisingly, this comparison allows us to realize the immense power of the US economy. If we compare the countries that top the European GDP rankings with Mississippi, one of the poorest states in the US, we get some surprising results, don't you think?
So, let's borrow some Python magic and visualize this interesting data. Are you ready?
European GDP Rankings and Mississippi's Surprising Meeting
First, let's look at some Python code that compares the GDP of European countries to the per capita income of the state of Mississippi.
import plotly.graph_objects as go
import pandas as pd
# GDP data for European countries in 2024 (example data, need to be updated with more recent data for real-world use)
europe_gdp = pd.DataFrame({
'country': [.
'Luxembourg', 'Ireland', 'Switzerland', 'Norway',
'Denmark', 'Netherlands', 'Iceland', 'Austria',
'Germany', 'Sweden', 'Belgium', 'Finland',
'France', 'United Kingdom', 'Italy', 'Spain',
'Cyprus', 'Malta', 'Slovenia', 'Estonia',
'Portugal', 'Czech Republic', 'Greece',
'Lithuania', 'Latvia', 'Slovakia', 'Hungary',
'Poland', 'Croatia', 'Romania', 'Bulgaria'
],
'gdp_per_capita': [ [
143000, 129300, 93800, 82900, 73300, 68500,
68600, 61800, 60600, 58700, 57700, 54100,
49800, 49200, 42900, 41200, 40100, 38700,
35800, 34300, 32800, 31400, 29900, 28800,
27500, 26200, 25100, 23800, 22700, 21600, 19800
]
})
# Mississippi GDP benchmark
ms_gdp = 36000 # usd
# Create binary classification
europe_gdp['above_ms'] = europe_gdp['gdp_per_capita'].apply(
lambda x: 1 if x > MS_GDP else 0
)
# Generate visualization
fig = go.Figure(go.Choropleth(
locations = europe_gdp['country'],
locationmode = 'country names',
z = europe_gdp['above_ms'],
colorscale = [[0, 'red'], [1, 'blue']],
marker_line_color = 'white',
text = europe_gdp.apply(
lambda row: f"{row['country']}<br>${row['gdp_per_capita']:,.0f}",
axis=1
),
hovertemplate = "%{text}<extra></extra>"
))
# Layout configuration
fig.update_layout(
title_text = f'European Countries GDP per Capita vs Mississippi (${MS_GDP:,})',
geo = dict(
scope = 'europe',
projection_type = 'natural earth',
showframe = False,
showcoastlines = True,
coastlinecolor = 'rgb(217,217,217)'
),
annotations = [dict(
x=0.5,
y=-0.1,
showarrow=False,
text = 'Source: IMF 2024 Estimates',
xref="paper",
yref="paper"
)]
)
fig.show()Code commentary:
- Import the libraries you need. We'll be using Plotly and Pandas.
- Create a DataFrame with GDP data for European countries. Be sure to update it with the latest data for real-world use!
- Set the GDP per capita for the state of Mississippi ($36,000).
above_msCreate a column to assign each country a value of 1 if its GDP is higher than Mississippi's and 0 if it is lower.- Create a map of Europe using Plotly's Choropleth object.
- Set the color of the map. Countries with GDPs higher than Mississippi are colored blue, and countries with lower GDPs are colored red.
- Sets the text information that appears when the mouse is hovered over.
- Set the layout of your map, and add a title and attribution information.
fig.show()to display the completed map.
When you run this code, you'll see a map of European countries with GDP per capita higher than Mississippi colored in blue and lower in red. Surprisingly, many European countries have lower GDP per capita than Mississippi, which is known as the poorest state in the U.S.!
Europe vs US GDP, and why the US is so much higher
Now, as you look at the map we've created, you might be wondering: "Why is the GDP of the United States so much higher than Europe?" Finding the answer to this question will help you understand the strength of the US economy.
- Innovation and technology leadership: The U.S. tech industry, epitomized by Silicon Valley, leads the world, with companies like Google, Apple, and Amazon generating enormous wealth.
- Huge domestic market: The US is a huge single market with over 330 million people, which makes it a great environment for companies to grow.
- Flexible labor market: The U.S. labor market is relatively flexible compared to Europe, which allows companies to react quickly to economic conditions.
- Business-friendly policies: The U.S. has policies that are generally favorable to entrepreneurial activity, which encourages companies to grow and invest.
- Strong financial markets: The financial markets in the U.S., centered in New York, are the largest in the world, which makes it easy for companies to raise money.
These factors combine to give the US a much higher GDP than Europe. Even Mississippi, one of the poorest states in the U.S., has a higher GDP per capita than many European countries. Isn't that amazing?
Economic geography by European GDP ranking
Now, let's take a closer look at the GDP ranking of European countries. Let's visualize the European GDP ranking with the Python code below.
import pandas as pd
import plotly.express as px
# GDP data for European countries in 2024 (example data, need to be updated with more recent data for real-world use)
data = {
'Country': ['Germany', 'United Kingdom', 'France', 'Italy', 'Spain', 'Netherlands', 'Switzerland', 'Sweden', 'Poland', 'Belgium'],
'GDP_Billion_USD': [4300, 3200, 2900, 2100, 1400, 1000, 800, 600, 590, 580]
}
df = pd.DataFrame(data)
Sort # GDP in descending order
df = df.sort_values('GDP_Billion_USD', ascending=False)
# Create an interactive bar graph with Plotly
fig = px.bar(df, x='Country', y='GDP_Billion_USD',
title='Top 10 European Countries by GDP in 2024',
labels={'GDP_Billion_USD': 'GDP (Billion USD)'},
color='GDP_Billion_USD',
color_continuous_scale=px.colors.sequential.Viridis)
Adjust the # layout
fig.update_layout(
xaxis_title='Country',
yaxis_title='GDP (Billion USD)',
coloraxis_showscale=False,
hoverlabel=dict(bgcolor="white", font_size=12),
font=dict(family="Arial", size=12)
)
Display the # graph
fig.show()Code commentary:
- Import the necessary libraries. Here we use Pandas and Plotly Express.
- Create a DataFrame with GDP data for the top 10 European countries.
- Sort by GDP in descending order.
- Plotly Express's
px.barfunction to generate a bar graph. - Set the graph's title, axis labels, colors, and more.
- Adjust the layout to make the graph more readable.
fig.show()to display the completed graph.
Looking at this graph, you can see at a glance that Germany, the United Kingdom, and France are the main pillars of the European economy, but the combined GDP of these countries is only about half of the GDP of the United States! Doesn't that give you an idea of how big the US economy is?
Meaning of per capita national income in Mississippi, USA
Now, let's dig a little deeper into the per capita income of Mississippi, our baseline state. Mississippi is known as the poorest state in the US, but it's worth thinking about what that "poor" standard means.
Mississippi has a GDP per capita of about $36,000, which is higher than many European countries. For example, countries like Greece, Portugal, and the Czech Republic have lower GDP per capita than Mississippi. This is a great example of the economic power of the United States.
But here's the caveat: a higher GDP or per capita income doesn't necessarily mean a higher quality of life. income inequality But here's the caveat: a higher GDP or per capita income doesn't necessarily mean a higher quality of life. income inequality, cost of living, welfare systems, and many other factors affect the actual quality of life.
Mississippi, for example, has a high GDP per capita but actually has one of the highest poverty rates in the U.S. This means that income inequality is high. On the other hand, some countries in Europe may have a lower GDP but a more balanced income distribution and a stronger social safety net, which can lead to a higher overall quality of life.
You also have to take into account the cost of living differences: healthcare and education costs are much higher in the US than in Europe, which can have a huge impact on the actual standard of living.
That's why we shouldn't just look at GDP or per capita income to judge the economic situation of a country or region. We need to consider income distribution, welfare systems, cost of living, and more to get a more accurate picture.
From this perspective, comparing the economies of Europe and the United States is a complex endeavor that goes beyond just numbers; it's important to understand the historical and cultural backgrounds and policy differences in each region.
Finalize
In conclusion, while comparing European GDP to the US state of Mississippi provides interesting insights, it is only part of the economic reality. We need to look at these data critically and interpret them in a broader context, so that we can better understand the complexities of the global economy and lay the groundwork for better policy decisions.
# Glossary
- GDP (Gross Domestic Product)The monetized value of all final goods and services produced within a country over a period of time.
- GDP per capitaA country's GDP divided by its total population, indicating the average income level of each citizen.
- Income inequalityA phenomenon in which income is not evenly distributed within a society, but is instead skewed.
- Benefits systemIt refers to various social services and systems provided by the state to ensure the basic quality of life for its citizens.
- Social safety netRefers to an institutional arrangement that assists people in economic hardship due to unemployment, illness, old age, etc.
- Cost of livingAll expenses necessary to live a normal life, including housing, food, healthcare, education, etc.
