Poorest U.S. State Nears Germany’s GDP Per Capita: A U.S.-Europe Economic Comparison

Mississippi, the poorest state in the United States, is on the verge of surpassing Germany, Europe’s largest economy, in GDP per capita. A comparative analysis by Euronews Business reveals how U.S. states stack up against European countries.

Mississippi’s GDP per capita is already higher than that of Europe’s five largest economies—except for Germany, where it lags by just €1,500. When adjusted for Purchasing Power Parity (PPP), the U.S. significantly outperforms the entire European Union (EU), with only Luxembourg and Ireland remaining ahead due to unique economic factors.

How Do U.S. States Compare to European Countries?

To provide a comprehensive comparison, GDP per capita figures for 2024 were sourced from the IMF’s Global Outlook report (as of October). U.S. state data was derived from the U.S. Bureau of Economic Analysis (BEA) for Q3 2024, using population estimates from the U.S. Census Bureau.

In Q3 2024, GDP per capita in U.S. states ranged from €49,780 ($53,872) in Mississippi to €246,523 ($266,787) in the District of Columbia. Other states at the lower end included:

West Virginia (€56,554)

Arkansas (€56,917)

Alabama (€58,061)

South Carolina (€59,375)

At the higher end, the top five states were:

District of Columbia (€246,523)

New York (€107,485)

Massachusetts (€101,666)

Washington (€99,844)

California (€96,836)

By comparison, EU GDP per capita in 2024 ranged from €15,773 in Bulgaria to €125,043 in Luxembourg, with an average of €40,060. The U.S. national average stood at €80,023 ($86,601).

Among Europe’s five largest economies (by total GDP), Germany led with:

Germany: €51,304

United Kingdom: €48,441

France: €44,365

Italy: €37,227

Spain: €33,070

Mississippi vs. Germany: A Narrowing Gap

Mississippi’s GDP per capita is higher than four of Europe's top five economies and is now closing in on Germany, with a shortfall of just €1,524. Despite being the EU’s largest economy, Germany contributed 24.3% of the bloc’s total GDP in 2024, yet its per capita output is nearly on par with America’s poorest state.

Meanwhile, Mississippi outperforms:

Spain by €16,710

Italy by €12,553

France by €5,415

United Kingdom by €1,339

The second-poorest U.S. state, West Virginia, has already overtaken Germany, exceeding its GDP per capita by €5,270.

The Impact of Purchasing Power Parity (PPP) Adjustments

Purchasing Power Parities (PPPs) measure price level differences across countries. Eurostat explains that PPPs show how much a given quantity of goods and services costs in different economies.

When adjusting GDP per capita for PPP, rankings change considerably. According to the IMF, in 2024:

U.S. GDP per capita (PPP-adjusted): $86,601

EU GDP per capita (PPP-adjusted): $62,660

Even after PPP adjustments, the U.S. remains ahead of all EU countries and the United Kingdom, except for Luxembourg and Ireland. However, the disparity shrinks significantly. For example:

Germany’s GDP per capita in nominal terms: $55,521

Germany’s GDP per capita (PPP-adjusted): $70,930

Regional Cost-of-Living Adjustments in the U.S.

For a fairer comparison, U.S. Regional Price Parities (RPPs) should be considered, as they account for differences in the cost of living, including housing costs.

The BEA’s 2023 RPP index shows that Mississippi’s cost of living was 12.7% lower than the U.S. average (87.3 vs. 100). Applying this adjustment, Mississippi’s GDP per capita (PPP-adjusted) in Q3 2024 would be approximately $60,714.

This places Mississippi slightly below the EU average but still above Spain.

Conclusion

The data highlights the stark economic contrast between the U.S. and Europe. Even Mississippi—America’s poorest state—has a GDP per capita higher than most major European economies, while its wealthiest states far exceed Europe’s top performers.

While PPP adjustments narrow the gap, the economic dominance of the U.S. remains clear, with even low-income states competing with Germany and the UK. The trend raises important questions about economic productivity, living standards, and cost-of-living disparities between the two regions.

SLHA and news agencies
4 April 2025