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Data extracted in January 2025. Planned article update: 31 March 2026.

Highlights

The European Neighbourhood East countries Armenia, Azerbaijan, Georgia, Moldova and Ukraine together recorded a GDP of €298.1 billion in 2023, 4.7% higher than in 2022. Ukraine alone contributed more than one half of this total.

In 2023, Moldova had the lowest economic activity rate among the European Neighbourhood East countries, with only 58.4% of the population aged 20 to 64 employed or actively seeking work. Azerbaijan recorded the highest rate, 80.6%, slightly higher than the EU rate (80.0%).

The services sector accounted for the largest share of employment in the European Neighbourhood East region in 2023, with shares from 48.6% in Azerbaijan to 62.4% in Georgia. In the EU, services accounted for 72.0% of employment.

In 2023, Moldova, Georgia and Armenia recorded deficits in trade of goods but surpluses in trade of services, resulting in deficits in their trade balances. In contrast, Azerbaijan recorded a surplus for trade of goods but a smaller deficit for services.

Infographic showing the unemployment rates in the EU, Azerbaijan, Armenia, Moldova, Georgia and Ukraine in 2023. The data are represented as horizontal line, sorted by value.
Source: Eurostat (lfsa_urgans) and (enpe_lfsa_urgans)

This article is part of an online publication. It presents statistics on recent economic developments for five European Neighbourhood Policy-East (ENP-East) countries, namely, Armenia, Azerbaijan, Georgia, the Republic of Moldova and Ukraine, compared with the European Union (EU). Georgia, Moldova and Ukraine are also candidate countries, the European Council having granted Moldova and Ukraine candidate status on 22 June 2022 and Georgia on 14 December 2023. This article does not contain any data on Belarus, as statistical cooperation with Belarus has been suspended as of March 2022.

Data shown for Georgia exclude the regions of Abkhazia and South Ossetia over which the government of Georgia does not exercise control. The data managed by the National Bureau of Statistics of the Republic of Moldova does not include data from the Transnistrian region over which the government of the Republic of Moldova does not exercise control. Since 2014, data for Ukraine generally exclude the illegally annexed Autonomous Republic of Crimea and the City of Sevastopol and the territories which are not under control of the Ukrainian government. As of 2022, data on Ukraine is limited due to reporting units being exempted from mandatory data submission to the State Statistics Service of Ukraine under the martial law, effective as of 3 March 2022, following Russia's war of aggression against Ukraine.

This article presents, among others: statistics on gross domestic product (GDP), measured in € and in € per capita; the size of the labour force compared to the total population of working age; the contributions of the respective main (non-financial) economic sectors to total employment and gross value added (GVA); the gross fixed capital formation in these economies; the trade balances of goods and services with the rest of the world from the balance of payments statistics; foreign direct investments (FDI) flows; and the structure of the enterprise sector by the size of the enterprises.

Gross domestic product (GDP)

Gross domestic product (GDP) is an aggregate measure of the size of an economy, based on its total final output. The ENP-East countries had a combined GDP of €298.1 billion in 2023, an overall increase of 4.7% compared with 2022. Their combined GDP corresponded to 1.7% of that of the EU, which stood at €17.2 trillion in 2023.

Within the European Neighbourhood East, GDP development varied between the countries. GDP in Armenia increased by 20.7% from 2022 to 2023 and that of Georgia by 19.3%. In contrast, the GDP in Azerbaijan declined by 10.5%. However, it should be kept in mind that these changes were also influenced by strong appreciations or depreciations of national currencies against the euro in 2022 and 2023. In particular, the Armenian dram strengthened against the euro by 28.6% over the two years from 2021 to 2023, while the Georgian lari strengthened by 25.5% over the same period. In comparison, the value of the Ukrainian hryvnia fell by 22.6% against the euro.

Ukraine retained its status as the largest economy among the ENP-East countries, despite Russia’s war of aggression against the country, with its GDP in 2023 provisionally valued at €165.3 billion. Azerbaijan upheld its position as the second largest economy within the group, even with the decline from 2022 to 2023. Azerbaijan’s GDP was €66.9 billion in 2023, down from €74.7 billion the previous year. The remaining ENP-East economies were significantly smaller. Georgia's GDP was €28.2 billion in 2023, Armenia’s amounted to €22.3 billion, while Moldova’s GDP totaled €15.5 billion.

Line chart showing GDP at market prices in euro billions in the European Neighbourhood Policy-East countries Armenia, Azerbaijan, Georgia, Moldova and Ukraine from 2013 to 2023.
Figure 1: Gross domestic product, 2013-2023
Source: Eurostat (nama_10_gdp) and (enpe_nama_10_gdp)

Real gross domestic product, also called GDP at constant prices, focuses on the volume of output, disregarding price changes. The calculation of the annual growth rate of GDP at constant prices, in other words real change in GDP, allows comparison of the dynamics of economic development, both over time and between economies of different sizes, regardless of developments in price levels and exchange rates.

Data on annual change in real GDP are shown in Figure 2 for the period 2019-2023. In 2019, immediately before the COVID-2019 pandemic affected economies, annual real GDP growth was stronger in the ENP-East countries than in the EU: 7.6% in Armenia, 5.4% in Georgia, 3.6% in Moldova, 3.2% in Ukraine and 2.5% in Azerbaijan, compared with a real GDP growth of 1.9% in the EU.

2020 marked the start of the COVID-19 pandemic with the associated impact on economies worldwide. All ENP-East countries and the EU recorded a decline in real GDP that year. Among the ENP-East countries, the largest decline was observed in Moldova at -8.3 %, followed by Armenia at -7.2 % and Georgia at -6.3%, all larger than the -5.6% decline in the EU. Real GDP fell at a slightly lower rate in Azerbaijan, at -4.2 %, and in Ukraine, at -3.8 %.

Although the pandemic continued into 2021, the economies of the ENP- East countries and the EU rebounded strongly. Generally, the countries that suffered the largest economic impact in 2020 also showed the greatest recovery in 2021, with most recording stronger real GDP growth in 2021 than the corresponding contraction in 2020. Moldova's real GDP growth in 2021 was 13.9%, Georgia's 10.6% and Azerbaijan's 5.6%, all greater than the decline in 2020. The exceptions were Armenia, where the 5.8% real GDP growth in 2021 fell 1.4 percentage points (pp) short of compensating the decline in 2020, and Ukraine with 3.4% (0.4 pp less than the corresponding drop in 2020).

In 2022, the beginning of Russia's war of aggression against Ukraine had a significant effect on Ukraine's economy, with real GDP falling sharply by -28.8%. Neighbouring Moldova also experienced a substantial decline in real GDP, by -4.6%. In contrast, real GDP increased strongly in Armenia and Georgia, by 12.6% and 11.0%, respectively, while real GDP growth was more moderate in Azerbaijan with an increase of 4.7%. In the EU, real GDP grew by 3.5% in 2022, 2.8 pp lower than the previous year.

In 2023, the sharp decline in Ukraine's real GDP the previous year was partly offset by a 5.3% increase. The real GDP in Moldova also returned to a positive trajectory, with real growth of 0.7%. Both Armenia and Georgia continued to show positive performances, albeit at a slower pace than in 2022. Armenia recorded a solid growth of 8.3% in 2023, although this represented a 4.3 pp lower growth rate relative to that in 2022. Georgia observed 7.5% growth in real GDP in 2023, the second highest in the region, albeit 3.5 pp lower than in 2022. Azerbaijan’s economic development remained positive with a modest real GDP growth of 1.1%.

In 2023, real GDP in the EU grew by 0.4%. This marked a slowdown in contrast to 2022 when real growth was 3.5%.

bar chart showing the year-on-year growth in real GDP, measured in percent change compared with the previous year, for the EU, Moldova, Georgia, Ukraine, Armenia and Azerbaijan for 2019 to 2023. The bars represent the real GDP growth of a country for each year, with the bars coloured according to year.
Figure 2: Growth in real gross domestic product, 2019-2023
Source: Eurostat (nama_10_gdp) and (enpe_nama_10_gdp)

Analysis of GDP per capita (per person) removes the influence of the population size, making comparisons between different countries easier. As a result, GDP per capita is a broad economic indicator that may be used for a basic analysis of living standards.

However, the global supply chain crisis following the COVID-19 pandemic [1] and the effects on world market prices of Russia's war of aggression against Ukraine affected inflation rates and exchange rates across the world. This was reflected in sharp increases in current prices GDP measured in euro in several of the ENP-East countries, in particular in 2022 (see Figure 1 above). The exception was Ukraine, where GDP in current prices fell less steeply than the real GDP measured in constant prices (chain-linked volumes, see Figure 2 above), following the beginning of Russia's war of aggression against Ukraine.

As shown in Table 1, GDP per capita increased for the EU and for the ENP-East countries in 2023, with Azerbaijan being the only exception. (Data for Ukraine are not available from 2022 on). Although Azerbaijan recorded the highest GDP per capita among the ENP-East countries in 2022, around €7 402 per capita, in 2023 it shrank to €6 590. This reflected a modest growth of 1.1% in real GDP in 2023, coupled with a weakening of the Azerbaijan manat of 3.0 % against the euro.

Georgia recorded the highest GDP per capita among the ENP-countries in 2023, at €7 601, closely followed by Armenia at €7 511 per capita. The lowest GDP per capita among these countries was registered in Moldova, at €6 224.

Although GDP per capita in the EU averaged €38 130 in 2023, up 6.0% against 2022, this increase was considerably lower than in most of the ENP-East countries. The increases from 2022 to 2023 amounted to 19.3% in Armenia, 18.5% in Georgia and 14.5% in Moldova, whereas GDP per capita, measured in euro, fell by 11.0% in Azerbaijan.

Table showing GDP in euro per capita in the EU, Armenia, Azerbaijan, Georgia, Moldova and Ukraine for the years 2013 to 2023.
Table 1: Gross domestic product (GDP) per capita, 2013-2023
Source: Eurostat (nama_10_pc) and (enpe_nama_10_gdp)

Labour force

The labour force consists of the economically active population. It includes both employed and unemployed people, while the economically inactive population is composed, among others, of students, pensioners, people caring for other family members and those who are unable to work because of long-term sickness or disability. Only the working-age population (20 to 64 years old) is considered in the data analysed. A high rate of the labour force within the whole population is considered a pillar to build a stable economy.

Figure 3 shows that, among the ENP-East countries, Azerbaijan maintained an activity rate very similar to the EU average (80.0%) in 2023, with its labour force corresponding to 80.6% of the population aged 20 to 64. Ukraine, at 71.9% (2021 data), Armenia at 70.1% and Georgia at 68.7% had slightly lower rates. Moldova continued to record the lowest activity rate among the ENP-East countries in 2023, at 58.4%.

In Azerbaijan, the activity rate increased by 3.9 pp from 2013 to 2023, with modest year-on-year increases in most years. In Ukraine, there was a minor decrease of -0.6 pp over the period 2013-2021, with a notable fall of 2.2 pp in 2014. As 2022 and 2023 data are not available for Ukraine, the data do not reflect the effects on the labour force of Russia's war of aggression against the country. Armenia recorded a steady decline from 2013 - 2019 in activity rate before growing from 2019 to 2023, with 2018 marking the lowest level at 66%. This year represents a break in the time series linked to the introduction of the 19th ICLS standards and methodological changes that redefined the working-age population and affected the estimation of activity and inactivity rates. Over the period as a whole, the activity rate decreased by 2.1 pp.

The activity rate in Georgia increased by 2.8 pp in 2023 compared with 2022. There was a significant shift in methodology in Georgia in 2020 when new ILO standards were implemented. This led to a shift in the level of the activity rate, with the rate 11.3 pp lower in 2020 (63.2%) than the previous year (74.5%). Consequently, data for 2020 and following years should not be directly compared with data for previous years for Georgia.

Moldova had by far the lowest economic activity rate among the ENP-East countries throughout the period. Nevertheless, the activity rate in 2023 was 8.5 pp higher than it had been in 2013. However, methodological changes in 2014 (definition of the resident population) and 2019 (new sampling plan, revised definition of employment) makes comparisons over time difficult for Moldova.

Line chart showing the development in the labour force as share of the total population aged 20 to 64 years in the EU, Armenia, Azerbaijan, Georgia, Moldova and Ukraine for the years 2013 to 2023.
Figure 3: Labour force, 2013-2023
Source: Eurostat (lfsa_argan) and (enpe_lfsa_argaed)

Employment and gross value added by sector

The structure of an economy can be assessed by analysing the contributions of key sectors to total gross value added (GVA) and total employment. GVA represents the value that producers have added to goods and services and is widely used as an indicator of economic productivity. For this analysis, total employment refers to the working population aged 15 and over. Comparing a sector’s share of total GVA to its share of total employment offers insights into relative labour productivity across the economy. When a sector’s contribution to GVA exceeds its share of employment, it may indicate higher-than-average productivity relative to the overall economy.

Data are shown in Figure 4. They all refer to 2023, except employment in Ukraine, which refers to 2021.

Most of the employment in the ENP-East countries is found in the 'Services' sector. In 2023, 'Services' accounted for between 48.6% of total employment in Azerbaijan to 62.4% in Georgia, maintaining a trend consistent with the previous year. The importance of the ‘Services’ sector to employment was substantially lower than in the EU.

The share of 'Services' in total GVA came close to the corresponding share in the EU in several of the ENP-East economies, with services generating 70.0% of total GVA in Ukraine (2021 data), 70.9% in Moldova and 71.2% in Georgia. The corresponding shares were much lower in Armenia, at 65.1%, and Azerbaijan, at 42.6%.

Thus, the 'Services' sector had higher labour productivity than the average for the economy in all of these countries (except Azerbaijan), with labour productivity defined as the sector’s contribution to total employment relative to its contribution to total GVA in the non-financial economy. In 2023, the 'Services' sector's shares of total GVA were between 7.8 pp (Armenia) and 13.4 pp (Moldova) higher than the corresponding shares of employment.

'Services' are crucial to the EU economy. They account for over 70% of the EU’s GDP and an equal share of its employment. In 2023, the 'Services' sector represented the largest shares of both total employment (72.0%) and total GVA (72.6%). The corresponding labour productivity was 0.6 percentage points higher than the average of the entire EU non-financial economy.

In Azerbaijan, the 'Services' sector's share of GVA (42.6%) remained lower than its share of employment (48.6%) in 2023. However, at -6.0 pp, the difference between the two shares declined compared with 2022, when it was -14.3 pp. The economy of Azerbaijan is highly dependent on the production and export of oil and natural gas. Fluctuations in world market prices have direct effects on GVA in Azerbaijan, with higher petroleum prices directly leading to higher GVA from the 'Industry' sector. In 2023, 'Industry' contributed 44.5% to total GVA, down from 55.2% in the previous year. Employment in the sector remained steady at 7.8% of the total, compared with 7.7% in 2022, reflecting that petroleum activities are more capital- than labour-intensive. 'Construction' and 'Agriculture, forestry, and fisheries' contributed much smaller shares to total GVA in 2023, at 6.8% and 6.1%, respectively. In contrast, 'Agriculture, forestry, fisheries' contributed 35.8% to total employment, while 'Construction' contributed a more modest 7.8%.

In the other ENP-East countries, the share of GVA generated by the 'Industry' sector ranged from 13.1% of total GVA in Moldova to 19.7% in Ukraine (2021 data). The share of total employment lay between 12.2% in Georgia to 18.2% in Ukraine (2021 data). In these countries, the labour productivity of the 'Industry' sector was relatively close to the average of the whole economy in 2023, varying from -1.4 pp in Moldova to 4.7 in Armenia. In the EU, the importance of the 'Industry' sector was relatively similar to these countries, accounting for 17.4% of total employment and 20.1% of total GVA in 2023.

In the ENP-East countries other than Azerbaijan, the 'Agriculture, forestry and fisheries' sector played a more important role for employment than for GVA. In 2023, its share of employment ranged from 14. 1% in Ukraine (2021 data) to 20.9% in Moldova, but its share of GVA only ranged between 6.9% in Georgia and 9.3% in Armenia. In comparison, the sector contributed only 3.5% of total employment and 1.8% of total GVA in the EU.

In general, there were no large differences between the 'Construction' sector's shares of total employment and total GVA in any of the ENP-East countries except Ukraine, where the sector contributed 7.0% to total employment (2021 data), but only 1.8% to GVA. In the other countries, the shares were fairly similar and close to the ones in the EU. While 'Construction' made up 6.8% of employment and 5.6% of GVA in the EU, in the other ENP-East countries (except Ukraine) this sector accounted for between 7.1% (Moldova) and 10.0% (Armenia) of employment, and between 6.8% (Azerbaijan) and 7.9% (Georgia) of GVA in 2023.

Combined chart, showing the shares of the four main non-financial economic sectors in total employment and gross value added, with bars representing the respective sectors' shares of employment and points marking their shares of GVA. Data for 2023 are presented for the EU, Armenia, Azerbaijan, Georgia, Moldova and Ukraine, for the economic sectors 'Agriculture, forestry and fisheries', 'Industry', 'Construction' and 'Services'.
Figure 4: Employment and gross value added by sector, 2023
Source: Eurostat (nama_10_a10), (enpe_nama_10), (lfsa_egan2) and (enpe_lfsa_act)

Gross fixed capital formation

Gross fixed capital formation (GFCF) indicates how much of the value added in an economy is invested rather than consumed. It is considered an indicator of future business activity. In general, GFCF tends to increase in times of economic growth and business confidence. Conversely, it tends to decrease in case of economic uncertainty or recession.

GFCF as a percentage of GDP for the ENP-East countries is presented in Figure 5 for the period 2013-2023, and compared to corresponding data for the EU. As reference, over this period GFCF in the EU grew slowly from 19.6 % of GDP in 2013 to 22.0 % in 2019, stabilising around this level for the rest of the period. Throughout the period, the GFCF-to-GDP investment ratios varied among the ENP-East countries, fluctuating considerably for several of them. This may reflect changes in the level of fixed capital investments or fluctuations in the level of GDP, just as high investments in certain years can be ascribed to larger projects or programmes.

Throughout the period, the GFCF-to-GDP ratio in Ukraine was amongst the lowest in the ENP-East countries, with only Armenia in 2018 and 2019 and Azerbaijan in 2023 registering lower GFCF ratios than Ukraine. The ratio in Ukraine fell from 17.3% in 2013 to 13.5% in 2015 before gradually rising to 17.7% in 2018. During the COVID-19 pandemic, fixed capital investments fell by 4.2 pp to 13.4% of GDP in 2020. In 2022, marked by the beginning of Russia’s war of aggression against Ukraine, GFCF fell to 11.9%. However, 2023 saw a strong increase in fixed capital investments, rising by 5.0 pp to 16.9% of GDP.

Similarly to Ukraine, considerable fluctuations in GFCF were observed in Armenia, Moldova and Azerbaijan. In Armenia, GFCF corresponded to 21.2% of GDP in 2013 and 20.9% in 2023. However, within this period, the ratio varied considerably, with notable declines in 2016 (-3-3 pp) and 2014 (-1.2 pp) and increases in 2020 (2.0 pp) and 2021 (3.4 pp). In Moldova, the recorded GFCF-to-GDP ratio in 2014 (26.0%) was 3.0 pp higher than the previous year, although this change may partially have been caused by a change in the methodology applied. Following a notable decline in the ratio in 2015 (-2.0 pp) and 2016 (-1.8 pp), fixed capital investments as share of GDP stabilised somewhat, with an increase of 1.5 pp in 2020. However, GFCF as share of GDP fell at increasing speed from 2021 on, culminating with a decrease of 2.5 pp to 19.6% of GDP in 2023.

In Azerbaijan, GFCF is influenced by the petroleum sector, with investments generally reflecting developments in the world market for oil and natural gas. Between 2013 (25.8%) and 2023 (14.9%), there were substantial year-on-year changes in the GFCF-to-GDP ratio. Strong increases in 2014 and 2020 (both 1.6 pp) and in particular 2023 (2.9 pp) were counteracted by sharp decreases in 2016 (-2.8 pp), 2018 (-3.1 pp) and particularly 2021 (-6.5 pp) and 2022 (-4.2 pp), years which were marked by turbulences in global petroleum markets due to the COVID-19 pandemic and the beginning of Russia’s war of aggression against Ukraine.

In Georgia, the development in the GFCF-to-GDP ratio 2013 to 2023 followed a more stable trend. An initial strong increase from 18.4% in 2013 to a peak at 26.0 % in 2016 was followed by continuous decline to reach 19.8% in 2022, before picking up growth again in 2023 (1.7 pp) to reach 21.5%.

Line chart showing the development in gross fixed capital formation as share of GDP in the EU, Armenia, Azerbaijan, Georgia, Moldova and Ukraine for the years 2013 to 2023.
Figure 5: Gross fixed capital formation, 2013-2023
Source: Eurostat (nama_10_gdp) and (enpe_nama_10_gdp_ea)

External balance of goods and services

The external balance of goods and services is the difference between exports and imports of goods and services. This balance is important for sustainable GDP growth. Measured as a share of GDP, it is also an expression of the openness of the economy and its dependence on international trade. Figure 6 presents the external balance of goods and services in the ENP-East countries for the years 2018 and 2023. Data for Ukraine are not available.

In 2023, Moldova, Georgia and Armenia’s international trade in goods resulted in deficits (net goods imports). The ratios of these deficits relative to GDP amounted to -29.5% for Moldova, -18.7% for Georgia and -10.4% for Armenia. However, for services these same countries recorded net exports, i.e., the value of exports of services was higher than that of imports: 5.5% in Moldova, 11.1% in Georgia and 9.6% in Armenia. Nevertheless, the surpluses in trade of services did not manage to compensate for the deficits in the trade of goods, leading to overall deficits in the total trade balance of goods and services for each of these countries.

Azerbaijan’s international trade in goods and services showed the opposite structure, with net exports of goods in both 2018 (20.8%) and 2023 (17.7%) but net imports of services of -4.3% in 2018 and -3.2% in 2023, respectively. In total, Azerbaijan maintained a positive balance of trade in goods and services for both years. In the EU, the trade balances relative to GDP remained slightly positive for both goods and services in 2023, at 1.5% and 0.9%, respectively, albeit slightly lower than in 2018.

Bar chart showing the surplus or deficit in trade of goods and services, respectively, as share of GDP in the EU, Armenia, Azerbaijan, Georgia, Moldova and Ukraine for the years 2018 and 2023.
Figure 6: External balance of goods and services, 2018 and 2023
Source: Eurostat (bop_gdp6_q) and (enpe_name_gdp_ext)

Foreign direct investment balance

Foreign direct investment (FDI) represents a lasting interest in an enterprise operating in another economy and implies the existence of a long-term relationship between the direct investor and the recipient enterprise. It forms a part of the financial account of the balance of payments. Inflows represent flows of investment into the economy; outflows represent flows of investment by the economy to the rest of the world. Negative values represent a reduction in the value of FDI in the economy; this may reflect transfer of ownership from foreign to domestic investors, revaluation of investments or other disinvestment. Countries that attract considerable inward investment are often themselves investors in other countries. The net balance of inward and outward FDI flows is shown in Figure 7. As FDI may reflect large investments in specific projects within a limited time frame, values can vary greatly from one year to another.

Over the period 2013-2023 as a whole, Ukraine was by far the ENP-East country that attracted the highest net inflows of FDI. Particular high net FDI inflows were recorded in 2021 at €6 391.6 million and 2019 at €4 629.7 million. Low net FDI outflows were recorded in 2015 at -€160.9 million and in 2020 at -€68.6 million. The 2020 value should be seen in context of the high inflows the previous and the following year, as well as the impact of the COVID-19 pandemic. Ukraine’s net FDI dropped sharply to EUR 249.9 million in 2022, before rebounding to EUR 4,102.8 million in 2023. The trend corresponds to the economic disruptions observed in 2022, including damage to infrastructure, reduced household consumption, and increased uncertainty. The rebound in FDI in 2023 is in line with the assessment that, despite the ongoing war, Ukraine’s macroeconomic indicators have been stronger than expected, contributing to an upward revision of the country’s growth outlook.

Until 2017, Azerbaijan experienced positive net FDI inflows, with highs of €1 670.9 million in 2014 and €1 740.8 million in 2016. From 2018 on, net direct investments in the country were negative, reaching a low of -€ 4 407.9 million in 2022. FDI outflows continued in 2023, though at a reduced scale of -€ 1 500.3 million.

Georgia, Armenia and Moldova had less scattered trends between 2013 and 2023, with a positive balance in their FDI flows throughout the period. Georgia recorded high net inflows of direct investments in 2022 (€1 837.9 million) and 2023 (€1 491.7 million). Armenia saw the highest net FDI inflows in 2022 (€896.6 million) and 2023 (€486.7 million), while Moldova registered the highest values in 2022 (€514.0 million) and 2019 (€428.4 million).

Line chart showing the net balance of foreign direct investments in euro millions in the European Neighbourhood Policy-East countries Armenia, Azerbaijan, Georgia, Moldova and Ukraine from 2013 to 2023.
Figure 7: Foreign direct investment balance, net flows, 2013-2023
Source: Eurostat (enpe_bop_c6_a)

Persons employed by enterprise size

The non-financial business economy includes the sectors industry, construction, distributive trades and services. The analysis of employment in the non-financial business economy, broken down by enterprise size, is presented in Figure 8. Data refers to 2023, except for Ukraine (2021 data). Data for Azerbaijan are not available.

Large enterprises are defined as enterprises with 250 or more persons employed; medium-sized enterprises as enterprises with 50 to 249 persons employed; small enterprises as enterprises with 10 to 49 persons employed; and micro enterprises as enterprises with less than 10 persons employed.

In 2023, large enterprises and micro enterprises together accounted for two thirds of employment in the non-financial business economy in the EU: large enterprises accounted for 35.8%, micro enterprises for 30.6%. Persons employed in small enterprises made up 18.6 % and those in medium-sized enterprises 15.0% of the total.

The structure of employment in Ukraine (2021 data) was quite similar to that in the EU, with almost three quarters of persons employed in large enterprises (33.0%) and micro enterprises (40.7%), while there were smaller shares in small (13.2%) and medium sized enterprises (13.1 %).

The same applied to a certain extent to Armenia, where large enterprises (30.3%) and micro enterprises (27.6%) employed the largest shares of the work force, with more moderate shares for small enterprises (22.2%) and medium-sized enterprises (19.9%).

In Georgia, large enterprises accounted for 38.6% of the persons employed in the non-financial business economy. Each of the other size categories accounted for around one fifth of the total: micro enterprises 21.6%; small enterprises 19.9%; and medium-sized enterprises 20.0%. In Moldova, the structure was more even across the four size categories of enterprises, with roughly one quarter of the persons employed in each: micro enterprises 21.5%; small enterprises 25.2%; medium-sized enterprises 24.4%; and large enterprises 28.9%.

Stapled bar chart to 100 per cent, showing the share of persons employed in the non-financial business economy by size of enterprise, in the EU, Armenia, Georgia, Moldova and Ukraine in 2023. The four size categories are micro enterprises, small enterprises, medium-sized enterprises and large enterprises.
Figure 8: Persons employed by enterprise size, 2023
Source: Eurostat (sbs_sc_ovw) and (enpe_sts_nfemp)


Source data for tables and graphs

Data sources

The data for ENP-East countries are supplied by and under the responsibility of the national statistical authorities of each country on a voluntary basis. The data result from an annual data collection cycle that has been established by Eurostat. These statistics are available free-of-charge on Eurostat’s website, together with a range of additional indicators for ENP-East countries covering most socio-economic topics.

The European system of national and regional accounts (ESA) provides the methodology for national accounts in the EU. The national accounts data presented in this article for ENP-East countries were generally collected under the international System of national accounts (SNA) standard. The structure of ESA 2010 is consistent with the international guidelines on national accounting set out in 2008 SNA.

GDP is the central measure of national accounts, which summarises the economic position of a country (or region). It can be calculated using different approaches: the output approach; the expenditure approach; and the income approach. The main aggregates of national accounts are compiled from institutional units, namely non-financial or financial corporations, general government, households, and non-profit institutions serving households (NPISH).

Context

Indicators derived from national accounts provide a picture of the economic situation; they are widely used for analysis and forecasting, as well as policymaking. The 2008-2009 global financial and economic crisis reinforced the need to develop more robust national accounts in order to improve the surveillance and monitoring of financial systems and the impact that the crisis may have on economies, while also providing additional valuable information to support economic initiatives geared towards recovery. The use of internationally accepted concepts and definitions permits analysis of different economies, such as the interdependencies between the economies of the EU Member States, or a comparison between the EU and non-member countries.

On 2 July 2021, the European Commission and the EU High Representative for Foreign Affairs and Security Policy presented the Eastern Partnership: a Renewed Agenda for cooperation with the EU's Eastern partners. This agenda is based on the five long-term objectives, with resilience at its core, as defined for the future of the Eastern Partnership (EaP) in the Joint Communication Eastern Partnership policy beyond 2020: Reinforcing Resilience – an Eastern Partnership that delivers for all in March 2020. It is further elaborated in the Joint Staff Working Document Recovery, resilience and reform: post 2020 Eastern Partnership priorities, amongst others defining the 'Top Ten Targets for 2025'. The Eastern Partnership’s agenda for recovery, resilience and reform is underpinned by an 'Economic and Investment Plan for the Eastern Partnership (EaP): Investing in resilient and competitive economies and societies' (Annex I of the Joint Staff Working Document). More detailed overviews are given in a Factsheet on the Eastern Partnership Joint Communication, presenting the policy objectives and the specific priorities, as well as in a Factsheet on EU-Eastern Neighbourhood flagship projects 2023-2024.

The Joint Declaration of the Eastern Partnership Summit 'Recovery, Resilience and Reform' of 15 December 2021 reaffirmed the strong commitment to a strategic, ambitious and forward-looking Eastern Partnership.

At the Eastern Partnership Foreign Affairs Ministerial meeting of 11 December 2023, the EU, member states and partners declared that they will step up their efforts to implement the Eastern Partnership’s agenda for recovery, resilience and reform, as well as tackling challenges related to the ongoing consequences of the Russian war of aggression against Ukraine for the entire region.

On 14-15 December 2023, the European Council decided to open accession negotiations with Moldova and Ukraine, and granted the status of candidate country to Georgia.

In cooperation with its ENP partners, Eurostat has the responsibility to promote and implement the use of European and internationally recognised standards and methodology for the production of statistics, necessary for designing and monitoring policies in various areas. Eurostat manages and coordinates EU efforts to increase the capacity of the ENP countries to develop, produce and disseminate good quality data according to European and international standards. Additional information on the policy context of the ENP is provided on the website of Directorate-General Enlargement and Eastern Neighbourhood (ENEST).

Footnotes

  1. ↑ OECD (2021), "Global value chains: Efficiency and risks in the context of COVID-19", OECD Policy Responses to Coronavirus (COVID-19), OECD Publishing, Paris

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