The economic, trade, social and governance profile, as well as the ranking of each country in relation to the 17 UN Sustainable Development Goals (SDGs), are key factors shaping investment decisions by public bodies, businesses and citizens, and influencing the design of European, national, regional and local partnerships on policies, programmes, projects and actions.
1. Greece: High human capital, not productive orientation and uneven, fragile prosperity
Greece is around 20–30% below the EU-27 average in GDP per capita (PPS). The long crisis of 2008–2015 left a deep mark: income levels fell noticeably compared with the “old EU”, and convergence has only been partially restored over the last decade. Despite improvements since 2015, the gap relative to the European average persists.
In terms of human development, Greece is consistently in the “very high” category (HDI > 0.85), with strong performance in health and education. However, the social fabric is weaker: the country ranks among the three worst in the EU in terms of risk of poverty or social exclusion (AROPE/inequalities), with rates around 26–30%. Inequalities and labour market insecurity are long-standing challenges.
At the level of democratic governance, Greece is classified as “Free” by Freedom House, with positive scores in Voice & Accountability and Rule of Law, though below the Northern European average. The most acute problem concerns media freedom: in recent years, the country has ranked last among EU Member States in the World Press Freedom Index (RSF/Reporters Sans Frontières), with persistent issues related to ownership transparency, political–media links, and the protection of journalists.
Greece’s SDG Index score (around 66–67 points) is significantly below the European average. The “red” fields are Goals 1 (no poverty), 8 (decent work), 10 (reduced inequalities), 13 (climate action) and 16 ( justice and strong institutions). There are better performances in areas such as education and certain environmental dimensions.
In terms of the trade balance, Greece traditionally records high deficits (especially pre-crisis, with double-digit percentages of GDP). The recession period led to a sharp reduction in imports and a temporary improvement; however, with the gradual recovery from 2016 onwards and the rise in energy prices, the trade deficit has returned to high levels. The productive model remains outward-oriented, primarily through services (tourism, shipping, real estate). Still, it has a weak industrial base and a strong dependence on imported energy, fuels, and other intermediate goods, including machinery, food-processing equipment, animal feed, IT, and chemicals.
2. Cyprus: High income, chronic external deficits
Cyprus is slightly below the EU average in GDP per capita (PPS), with a gap of less than 10%. Despite the banking crisis of the early 2010s, the economy recovered and stabilised at an “above-average” income level for the South-East European region.
Cyprus’ Human Development Index (HDI) is also in the “very high” category, with performance similar to other Mediterranean EU countries. Poverty and social exclusion are around the EU average, without the extreme levels of Greece, Bulgaria or Romania, but with visible vulnerabilities among young people, the long-term unemployed and households with heavy housing costs.
Institutionally, Cyprus is consistently classified as “Free” and shows positive values in Rule of Law and Control of Corruption, although there are concerns about the link between money and politics and transparency in the banking/financial system. Media freedom stands close to the European median, without the extreme deviations found in Greece but also without the very high scores of the Northern countries.
Cyprus’ SDG Index score (around 62–63 points) is below the European average, with lags on environmental issues, urban sprawl and spatial planning, as well as on inequalities and institutions. Progress in implementing the SDGs is real but not sufficient to close the gap with the European average quickly.
Cyprus’ trade balance shows a long-standing and high deficit throughout the period examined. The strong dependence on imported goods, combined with the country’s role as an international financial and services centre, means that the external balance relies mainly on the balance of services and capital flows rather than industrial or agricultural exports.
3. Italy: Large economy, structural inequalities and environmental challenges
Italy, as one of the largest economies in the EU, lies slightly below the EU average in GDP per capita (PPS), with a persistent problem of low productivity and anaemic long-term growth. Regional inequalities between North and South remain pronounced.
The UN Human Development Index (HDI) is high, with strong public health and education systems, and the Social Progress Index places Italy in the upper half of countries. However, youth unemployment and long-term exclusion in certain regions limit social mobility.
In the field of democracy and media, Italy is classified as “Free”, but there are signs of deterioration in press freedom and pluralism, with RSF (Reporters Sans Frontières) recording a decline in recent years. The World Governance Indicators (WGI) show positive but not exceptional scores, with persistent issues of corruption and slow justice.
Italy’s SDG Index score (around 72–73 points) places the country in the upper half of the European ranking, without reaching the performance of the Northern champions. The main weaknesses concern climate, sustainable mobility, inequalities and institutional reforms.
Italy stands out in terms of its trade balance: after periods of small deficits or near-balance, the country has established a stable surplus in recent years, thanks to the international competitiveness of its industry (machinery, automotive, design products, high value-added agri-food).
4. Slovenia: The “quiet champion” of the region
Slovenia is the country in South-East Europe closest to the EU core in terms of convergence: its GDP per capita has reached around 92% of the EU-27 average, with continuous upward movement after 2015. In income and institutional terms, Slovenia is closer to the Northern countries than to its Balkan surroundings.
The UN Human Development Index (HDI) is very high and the Social Progress Index ranks the country in the upper part of the European scale. Public services, social protection and access to rights are particularly advanced.
In terms of democracy and media, Slovenia is assessed as “Free”, with positive WGI scores and clear improvement in the Press Freedom Index in recent years. Despite periods of political tension, institutions have proved resilient.
On the SDG Index, Slovenia achieves a score of about 73.8 points and is in the top ten in Europe, performing above the EU average on almost all goals. The country is very close to full achievement of certain SDGs related to education, health and social protection, while the main challenges concern climate and some aspects of production/consumption patterns.
Slovenia’s trade balance has changed impressively: from deficits in 2000–2008, the country has moved to stable surpluses after the crisis, supported by an export-oriented, technology-intensive industry and strong linkages with German and Italian value chains.
5. Croatia: From periphery to the convergence group
Croatia has made remarkable progress, rising from about 50–55% of the EU average GDP per capita in the early 2000s to 75–80% today. EU accession in 2013 accelerated convergence through investment, tourism and access to the single market and EU funds.
The country’s UN HDI is high, with very good results in basic human needs and social protection, although the “Opportunities” and “Personal Rights” dimensions of the SPI show some gaps compared with the most advanced EU countries.
Croatia is assessed as a “Free” democracy, with positive but moderate WGI scores and challenges in the justice system and corruption. Its position in the Press Freedom Index is middle-ranked, without extreme deviations.
In the SDG Index, Croatia (around 72.4 points) is among the best performers in South-East Europe, close to Italy and slightly below Slovenia. Strengths include education, health, basic infrastructure and social protection, while weaknesses arise in inequalities and climate policy.
In terms of the trade balance, the country started with persistent deficits in the 2000s, but after EU accession there has been significant improvement, with some years close to balance. Tourism and related services play a central role in its external position.
6. Bulgaria: Rapid convergence, persistent social inequalities
Bulgaria remains the country with the lowest GDP per capita in the EU, about 34% below the average. However, from EU accession in 2007 to today it has achieved significant convergence, almost doubling its PPS level.
On human development, the UN HDI is high, but social progress (SPI) shows substantial gaps, especially in “Opportunities” and regional inequalities. Bulgaria has the highest share of population at risk of poverty or social exclusion in the EU (above 30%), with strong spatial and ethnic disparities.
The country is assessed as “Free” by Freedom House, but with low WGI values (Rule of Law, Control of Corruption). In the RSF World Press Freedom Index, however, Bulgaria has shown clear improvement, moving up several places in recent years.
Bulgaria’s SDG Index score (around 63 points) places it below the European average, with large gaps in SDG 1 (no poverty), 8 (decent work), 10 (reduced inequalities) and 16 (peace, justice and strong institutions). Despite economic convergence, social and institutional capital remain weak.
The trade balance has improved significantly: from persistent deficits in the early 2000s, Bulgaria has become a relatively export-oriented economy, with small surpluses or balanced positions in several years, thanks to an upgraded industrial base and exports to the EU.
7. Romania: Rapid convergence with social tensions
Romania has recorded one of the largest increases in GDP per capita (PPS) in the EU over the last twenty years, rising from roughly 35–40% of the EU average to about 75–80% today. Nevertheless, it still remains 20–25% below the Union’s average.
The UN HDI is very high and progress in human development is substantial. However, the country shows high poverty rates (AROPE around 28–30%), especially in rural areas and in the Romanian periphery. The SPI records deficiencies in social inclusion and quality of institutions.
Romania is assessed as “Free”, but both the WGI and periodic rule-of-law reports highlight continuing problems of corruption, judicial independence and institutional stability.
Romania’s SDG Index score (around 64 points) shows a significant gap relative to the EU average, with the biggest lags in SDGs relating to social cohesion and institutions. There are improvements in infrastructure, digitalisation and energy.
Romania’s trade balance remains in deficit and has actually worsened after 2015, with imports of intermediate and consumer goods increasing faster than exports. Integration into European value chains generates exports, but at the same time widens demand for imports.
8. Serbia: Intermediate converger with institutional weaknesses
Serbia stands at about 50–55% of the EU-27 average GDP per capita, after steady but not spectacular convergence. Its UN HDI is high, but the SPI highlights gaps in rights, opportunities and institutions.
The country is characterised as “Partly Free” by Freedom House, with negative WGI scores especially in Voice & Accountability and Rule of Law. Media freedom has deteriorated, with strong politicisation, concentrated ownership and pressure on journalists.
Serbia’s SDG Index score (around 63 points) is below the EU average, but shows positive trends in selected goals, such as SDG 4 (quality education), SDG 9 (industry, innovation and infrastructure) and SDG 13 (climate action). The central deficits concern SDGs on institutions, inequalities and employment.
Serbia’s trade balance was heavily in deficit in the early 2000s, but has improved through investment in manufacturing and export activity (particularly in the automotive and electronic components sectors). Even so, the country remains clearly in deficit in trade in goods.
9. Montenegro: Small open economy with large external deficits
Montenegro, with GDP per capita at around 50% of the EU-27 average, is a small and highly open economy, dependent on tourism and services. Its UN HDI is high, but the structure of the economy remains vulnerable to external shocks.
Institutionally, the country is classified as “Partly Free”, with significant weaknesses in rule of law, corruption and media independence. WGI scores and press freedom assessments underline the dependence of the media on politico-economic networks.
The SDG Index places Montenegro below the European average, with particular lags in SDG 8 (decent work), 10 (reduced inequalities) and 16 (peace, justice and strong institutions), while SDGs related to climate or energy show mixed performance, affected by intense tourism activity.
Montenegro’s trade balance is chronically and extremely in deficit, with imports of goods (especially energy, food, materials) far exceeding exports. The external balance rests on tourism and capital inflows, but not on a sustainable industrial base.
10. Albania: Progress with structural economic gaps
Albania’s GDP per capita remains around 35–40% of the EU-27 average, despite significant convergence over the last two decades. Its UN HDI (0.810) has risen to the point where the country is now classified in the “very high” human development category – an impressive outcome given its starting point.
However, poverty and social exclusion remain high, with a broad segment of the population at risk and pronounced energy poverty. The “black economy”, migration and uneven regional development burden social cohesion.
Albania is recorded as “Partly Free”, with weaknesses in justice, corruption and institutional stability. Media freedom remains limited, with pressures and concentrated ownership.
On the SDG Index, the country ranks below the EU average, with better performance in education, energy and some environmental goals, but strong “red areas” in poverty, work, inequalities and institutions.
Albania’s trade balance is chronically and heavily in deficit, often exceeding 20% of GDP. The productive model remains import-dependent, with limited industrial and agri-food value added and low-diversified exports.
11. North Macedonia: Moderate progress
North Macedonia stands at around 40% of the EU-27 average GDP per capita, with gradual but slow convergence. Its UN HDI is high, with good health and education indicators despite the lower income level.
Institutionally, the country is assessed as “Partly Free”, with problems of political polarisation and rule of law. However, there has been improvement in the Press Freedom Index, with North Macedonia ranking around 36th worldwide – the best performance among the Western Balkans.
Its SDG Index score (62.5 points) places the country below the European average and below Cyprus, with difficulties in poverty, inequalities, the labour market and institutions, but positive results in some environmental and social services fields.
North Macedonia’s trade balance was strongly in deficit for many years. The establishment of export-oriented plants (especially in the automotive and electronic components sectors) has improved the country’s position, but the balance remains clearly negative.
12. Bosnia and Herzegovina: Multi-layered state, limited economic base
Bosnia and Herzegovina remains at around 35% of the EU-27 average GDP per capita, with slow convergence. Its UN HDI (0.804) has improved by about 19% since 2000, placing the country in the “very high” human development category.
Institutionally, Bosnia and Herzegovina is classified as “Partly Free”, with a complex state architecture (entities, cantons) and strong ethnic and party lines that are also reflected in the media landscape. WGI scores remain low, with weaknesses in Rule of Law and Control of Corruption.
The country’s SDG performance is below the European average, with structural problems in poverty, employment, inequalities and institutions, although improvements are observed in basic services and education.
Bosnia and Herzegovina’s trade balance is persistently in deficit over the whole period examined, with a limited industrial base and exports consisting mainly of raw materials and low value-added products.
13. Türkiye: Middle income, strong industrial sector and authoritarian turn
Türkiye, although not an EU Member State, is a key player in South-East Europe and the Eastern Mediterranean. In terms of GDP per capita (PPS), it stands at about 50–60% of the EU-27 average, with large fluctuations due to currency and macroeconomic crises. Its total GDP makes it one of the largest economies in the wider region.
Its UN HDI places Türkiye in the “high human development” category, with significant progress in education and health but marked inequalities between urban centres and rural/eastern regions. The social fabric is strained by high inflation, youth unemployment and intense middle-class insecurity.
In terms of democracy, Türkiye has clearly moved towards more authoritarian patterns. The country is assessed as “Not Free” or barely beyond “Partly Free”, with serious concerns over rule of law, judicial independence, rights of the opposition and civil society. The World Press Freedom Index ranks Türkiye low, with extensive violations, arrests of journalists and concentrated media ownership.
Türkiye’s SDG Index score (around 59 points) places it significantly below the EU average, with serious lags in SDG 16 (peace, justice and strong institutions), SDG 5 (gender equality), SDG 10 (reduced inequalities) and SDG 13 (climate action). There are better performances in some SDGs relating to infrastructure, energy and industrial development.
Türkiye’s trade balance is generally in deficit, despite its strong export base. The country has a well-developed industrial sector (automotive, engineering products, textiles, white goods) with significant exports to the EU, but high energy dependence and imports of intermediate goods lead to persistent trade deficits in goods, partly offset by tourism and other services.
14. Malta: Small advanced services economy
Malta is one of the smallest but most developed economies in the EU. In GDP per capita (PPS) it stands above the Union average, belonging to the group of countries with high output in services, financial activities, logistics and the digital economy.
Malta’s UN HDI is very high, with strong performance in health and education. Poverty is around or below the EU average, with a well-developed social protection system despite the inherent pressures of the housing market.
Institutionally, the country is classified as “Free”, but has faced serious debate and criticism regarding rule of law, corruption and judicial independence, especially after the murder of journalist Daphne Caruana Galizia. WGI scores remain positive, but European rule-of-law reports highlight structural weaknesses.
Malta’s SDG Index score is close to or slightly below the EU average, with good performance in education and health but challenges in environment, urban development and institutions.
Malta’s trade balance, due to the specific structure of the economy (very high importance of services, shipping, aviation, financial and digital services), presents a peculiar picture: deficits in trade in goods are offset by large surpluses in services and capital flows. The small scale and strong dependence on imported goods make analysis of the trade balance more technical than straightforwardly comparative.
15. Overall comparative conclusion
At the level of income, South-East Europe and the Eastern Mediterranean show a multi-layered picture:
- “Upper tier”: Slovenia, Malta, Italy and to a lesser extent Cyprus, close to or above the EU average.
- “Middle tier”: Greece, Croatia, Romania, Bulgaria, Türkiye, with significant progress but a persistent gap.
- “Lower tier”: the Western Balkan countries (Serbia, Montenegro, Albania, North Macedonia, Bosnia and Herzegovina), at 35–55% of the European average GDP per capita.
In terms of human development, all countries have moved into the “high” or “very high” category, but gaps in income, inequalities and poverty remain substantial, particularly in Greece, Bulgaria, Romania and the Western Balkans.
At the level of democracy and institutions, the EU Member States of South-East Europe (apart from Malta/Slovenia) show clear weaknesses in rule of law, corruption and media freedom, while the Western Balkan countries and especially Türkiye are even further away from European standards.
With regard to the Sustainable Development Goals, the region shows a stable pattern: good progress in health, education and basic infrastructure, but persistent lags in SDGs related to poverty, employment, inequalities, climate and democratic institutions.
Finally, in terms of the trade balance, the distinction is clear:
- A few countries – mainly Italy, Slovenia and Croatia – have managed to establish more balanced or surplus external positions.
- The majority (Greece, Cyprus, Romania, the Western Balkans, Türkiye) remain structurally in deficit, with development models based on imports of goods and exports of services, without sufficient industrial diversification.
This “triple deficit” – of income, equality, democratic institutions and trade balance – is the core thread running through South-East Europe and the Eastern Mediterranean, placing the countries within a common yet multi-layered framework of European convergence and sustainable transition.
Main statistical sources
- Eurostat, GDP per capita in PPS (tec00114), various years.
- Eurostat, People at risk of poverty or social exclusion (AROPE), EU-SILC.
- World Bank, World Development Indicators (GDP, current account, trade, unemployment), various years.
- World Bank, Worldwide Governance Indicators (Voice & Accountability, Rule of Law, Control of Corruption).
- Reporters Without Borders (RSF), World Press Freedom Index 2024.
- Sustainable Development Solutions Network & Bertelsmann Stiftung, Europe Sustainable Development Report 2025 (European SDG Index).
- Sustainable Development Solutions Network, Sustainable Development Report (Global SDG Index).
- OECD and national statistical offices of Western Balkan countries, various years.
- UNDP, Human Development Report 2023/24 and HDI Statistical Annex (HDI, trends 1990–2023).
- Freedom House, Freedom in the World 2025 (country scores and status).
Annex: The UN Human Development Index (HDI)
The UN HDI consists of three core dimensions:
- Health – Life expectancy
- Reflects how healthy and how long people live.
- Includes key factors such as mortality, access to healthcare, environment, quality of life and nutrition, etc.
- Education (two sub-indicators)
- Mean years of schooling (how many years of education adults have completed on average).
- Expected years of schooling (how many years of education a child entering school can expect to receive).
- Income – Gross National Income per capita (GNI per capita)
- Measured in terms of purchasing power parity (PPP).
- Reflects the standard of living and the economic capacity of citizens.