Comparing United States and European Union by Economy

The United States and the European Union are the two largest economies globally in nominal terms. As of 2026, together they account for 43.88% of global GDP in nominal terms and 28.31% in purchasing power parity (PPP) terms.

According to IMF projections for 2026, the United States is expected to have a nominal GDP of $32,384 billion, exceeding the European Union by $9,349 billion, or about 1.41 times the EU’s GDP of $23,035 billion at current exchange rates. In PPP terms, the gap is smaller, with the United States ahead by Int. $1,706 billion, or about 1.06 times the EU’s GDP (Int. $30,677 billion).

Estimates from the World Bank and IMF show that between 1960 and 2026, the United States has had a higher nominal GDP in 54 years, while the European Union has surpassed the United States for 13 years. 2011 was the most recent year in which the EU’s GDP exceeded that of the United States. The GDP ratio was highest in favor of the United States in 1960, when the U.S. economy was 1.90 times the size of the EU economy. In contrast, the EU’s advantage peaked in 1980, when its GDP was 1.16 times that of the United States. In PPP terms, the two economies have generally remained close, although the United States has led in most years.

As of 2026, the United States has a nominal GDP per capita about 85% higher than that of the European Union. Even after adjusting for purchasing power parity (PPP), U.S. GDP per capita remains about 39% higher than the EU average. The United States has maintained a higher GDP per capita than the EU continuously since 1960.

Looking ahead, the United States is projected to grow at around 2% annually in the coming years, while the European Union may remain below the 2% mark. Historically, the European Union recorded its highest GDP growth rate of 7.03% in 1969 and its lowest rate of −5.58% in 2020. The United States reached its highest GDP growth rate of 7.24% in 1984 and its lowest rate of −2.58% in 2009.

Between 1960 and 2025, the EU experienced growth above 5% in nine years. During the same period, the U.S. economy grew by more than 5% in ten years. GDP growth was negative in seven years for the United States, compared with six years for the European Union.