Analyzing the European Union’s GDP Composition

Service sector contribution

The EU’s (European Union) GDP (gross domestic product) depends on the service sector. The service sector contributes ~73.90% towards the EU’s (EZU) GDP. Services include software, telecommunication, pharmaceutical, financial institution, and others. SAP (SAP), an IT company, is a leading software solution provider for wider business needs.

Telecommunication companies like Telefonica (TEF) and Orange (ORAN) have a weight of 2.3% and 1.2% in the SPDR EURO STOXX 50 (FEZ). The telecommunication industry accounts for 6.9% of FEZ. Deutsche Bank (DB) and ING Groep (ING) are among the leading financial institutions in the Eurozone. The financial sector has a weight of 22.8% in FEZ. London is the financial capital of the EU. Most of the leading financial institutions stationed their headquarters in London.

Analyzing the European Union’s GDP Composition

Industries and agriculture 

The industrial sector contributes 24.4% towards the GDP. Auto manufacturing is one of the prominent businesses in the industrial sector. Auto manufacturers account for 7% in FEZ. Companies like Volkswagon (VLKAY), Daimler (DDAIF), and BMW are the leading auto manufacturers in the Eurozone. Germany accounts for a significant amount of auto manufacturing in the EU.

Agriculture accounts for 1.6% of the GDP. EU members don’t have agricultural-based economies. Agriculture mainly aims to meet the people’s food requirements.

The above graph explains the EU’s GDP composition by sector.

GDP comparison with major economies

Services account for 80.4% of the US GDP. In China, it accounted for 48.2% of the GDP in 2014. Industry accounts for 24.5% of the GDP in the US. It accounts for 42.6% of China’s GDP. In the next part, we’ll analyze the EU’s performance in the last year.