Why is the UK GDP per capita so much lower than that of the Western Europe?

[Deneb]

Why is the UK GDP per capita so low? It strikes me, especially because London is one of the most expensive cities in the world. However the English per capita income is now below of the all Western European countries. In fact, it only surpasses the Mediterranean countries and those of the former communist bloc.

I know that the low price of the pound is part of the problem, but it can not explain everything. So, What is the problem?

[Universe]

The UK isn't doing bad at all at AIC. Gdp/Capita is not necessarily the most accurate metric out there when it comes to measuring living standards.
https://ec.europa.eu/eurostat/docume...c-0532a4d50430

[Universe]

I edited the post above. The new link seems more reliable

[ixulescu]

When it comes to AIC Uk isn't doing bad at all. Gdp/Capita is not necessarily the most accurate metric out there when it comes to measuring living standards.
https://ec.europa.eu/eurostat/docume...c-0532a4d50430

AIC includes rent. Eastern Europe pays very little in rent if at all (since most people own the apartments).
Also, adjusting rent prices with PPP doesn't work. Rent is almost 10 times more expensive in the West than in the East.
Common health care services are also far more expensive in the West.

[♥ Lily ♥]

AIC includes rent. Eastern Europe pays very little in rent if at all (since most people own the apartments).
Also, adjusting rent prices with PPP doesn't work. Rent is almost 10 times more expensive in the West than in the East.
Common health care services are also far more expensive in the West.

We have both private heathcare and the free publicly funded National Health Service.

[ixulescu]

We have both private heathcare and the free publicly funded National Health Service.

The state funded part of health care services is included in AIC as well.

[Universe]

(since most people own the apartments).

Really? I don't know about this.

Also, adjusting rent prices with PPP doesn't work. Rent is almost 10 times more expensive in the West than in the East.

That's an exaggeration.
I've just checked in an article, rent in Nürnberg is about 3 times more expensive than in Budapest, but salaries are also 3( or possibly more like 4-5) times higher than in Budapest. So what's the problem?

Common health care services are also far more expensive in the West.

I don't have statistics about it, but the situation may be the same as above.

[ixulescu]

Really? I don't know about this.

compare home ownership in Eastern vs Western Euro countries

[Tenma de Pegasus]

Why is the UK GDP per capita so low? It strikes me, especially because London is one of the most expensive cities in the world. However the English per capita income is now below of the all Western European countries. In fact, it only surpasses the Mediterranean countries and those of the former communist bloc.

I know that the low price of the pound is part of the problem, but it can not explain everything. So, What is the problem?

In 2010 it was much lower and much behind France and Germany and closer to Spain/Italy. I remember they have improving they gdp per capta a lot together with Germany, Poland and Croatia.

[ixulescu]

That's an exaggeration.
I've just checked in an article, rent in Nürnberg is about 3 times more expensive than in Budapest, but salaries are also 3( or possibly more like 4-5) times higher than in Budapest. So what's the problem?

If you use Budapest compare it with other capitals, like Paris or London.
Germany is a bad example because its capital used to be Eastern Euro (more than half of it).

Sometime ago I spent some time to see how expensive are 1960 or 70s commieblocks in Western capitals. On average an apartment that would cost 40k euro in Bucharest was 400k in cities like Rome.