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The Poorest US States Are Wealthier Than Major European Economies

Some of the least affluent states in the United States are outpacing major European economies in terms of GDP per capita, with Mississippi leading the charge. But will this hold true in 2025?

Key Facts

As of the third quarter of 2024, Mississippi’s GDP per capita was €49,780, nearly matching Germany’s €51,304. The US state sits comfortably above several major European nations, including Spain, Italy, and France.

Following Mississippi in the rankings are West Virginia, Arkansas, Alabama, and South Carolina, all of which have higher GDP per capita than economies like Spain and Italy.

On the flip side, the wealthiest areas in the US—New York and the District of Columbia—boast significant GDPs, with New York’s reaching €107,485 and the District of Columbia’s soaring to €246,523.

When compared to European economies, the GDP per capita ranges from €15,773 in Bulgaria to €125,043 in Luxembourg. The EU’s average is €40,060, while the US surpasses that with an average of €80,023. Among Europe’s largest economies, Germany leads with €51,304, followed by the UK at €48,441, France at €44,365, Italy at €37,227, and Spain at €33,070.

What To Watch For?

The gap in economic output narrows when considering purchasing power parity (PPP), which adjusts for cost-of-living differences. Nevertheless, the US continues to outpace the EU and the UK, with the exceptions of Luxembourg and Ireland—both of which benefit from unique economic factors like Luxembourg’s foreign employer-driven growth and Ireland’s tax strategies aimed at attracting multinational companies.

While GDP captures total economic output, PPP provides a more accurate reflection of living standards, adjusting for the varying costs of goods and services across countries.

Germany’s Economic Struggles

Germany, Europe’s largest economy, faces its own set of challenges. The EU’s latest economic forecast predicts a further decline of 0.1% in 2024, after a 0.2% dip in the first half of the year. This follows a 0.3% contraction in 2023, marking the second consecutive year of negative growth. However, a recovery is on the horizon, with GDP expected to rise by 0.7% in 2025 and 1.3% in 2026. Despite this optimistic outlook, the ongoing uncertainty has led to decreased investment, lower consumption, and an increase in the unemployment rate, which climbed 0.5% to 3.5% between September 2023 and September 2024.

This situation places pressure on European economies, while some of the poorest US states continue to outperform their continental counterparts. As we look ahead, it will be fascinating to see whether the trend persists into 2025 and beyond.

Eurobank Plans €1 Billion Investment In AI And Digital Banking By 2028

Eurobank plans to invest about €1 billion in technology from 2025 through 2028, its largest technology investment program to date. The Banking Forward strategy focuses on digital banking, artificial intelligence, customer experience and a “phygital” model combining digital services with face-to-face support.

Digital Banking Dominates Customer Activity

Digital channels already account for 96% of Eurobank transactions, with 61% completed through the Eurobank Mobile App. Among customers aged 35 and under, digital adoption reaches 94%.

Customers make about 574 million annual logins across e/m-banking and more than 1 million digital transactions each day. During the first half of 2026, one in three banking products was acquired digitally.

AI Moves Into Everyday Banking

Eurobank is expanding the use of AI through tools including EVA, its digital customer assistant, and myEVA, an AI-powered voice assistant for employees. The technology is also being applied to mortgage assessments, customer feedback analysis and contractual documents.

The bank’s technology architecture is built around five areas: digital channels, customer experience orchestration, data and AI, core banking, and infrastructure and cloud. About 50% of its applications and digital channels are already cloud-based.

Investment Extends Beyond Technology

The program is intended to reshape how Eurobank operates, combining automation and AI with employee development and human support. The bank says the approach is designed to improve services while maintaining access to face-to-face banking when customers need it.

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