The Mediterranean presents significant economic and social diversity. Regional GDP is dominated by EU countries (73.4%), with Türkiye and Egypt as the main economies in the Middle East and North Africa. Significant growth in GDP per capita is observed in Türkiye and Albania, while Syria and Libya have suffered contractions. In the EU economies, the role of services is prevalent, while North Africa and the Balkans show a strong share of agricultural value added. In addition to the major EU countries, also Israel, Morocco, Türkiye and North Macedonia are specialized in medium and high technology productions.
Economic issues are analyzed through indicators that examine total and per capita GDP, composition of value added by economic sectors, average annual growth, medium and high-tech production, as well as regional trends in agriculture and manufacturing.
GDP per capita, PPP (constant 2017 international $)
Agriculture, forestry, and fishing, value added (% of total value added)
Industry (including construction), value added (% of total value added)
Services, value added (% of total value added)
Medium and high-tech manufacturing value added (% manufacturing value added)
area_code
ordgeo
Countries
2023
2023
2023
2023
2023
2023
2021
Portugal
287.1
2.3
41,709.6
2.3
20.7
77.0
27.7
A
1
Spain
1,580.7
2.5
46,356.6
2.6
22.2
75.2
39.8
A
2
France
3,030.9
0.7
55,213.7
2.1
20.8
77.1
51.7
A
3
Italy
2,254.9
0.9
52,699.9
2.2
25.7
72.2
43.5
A
4
Slovenia
68.2
1.6
48,109.1
2.1
32.8
65.1
37.3
A
5
Croatia
82.7
3.1
41,343.5
3.6
22.6
73.8
32.7
A
6
Greece
238.2
2.0
36,267.7
4.4
18.0
77.7
26.5
A
7
Malta
21.0
5.6
57,230.1
0.8
13.1
86.1
29.0
A
8
Cyprus
32.2
2.5
50,578.4
1.8
13.9
84.3
29.8
A
9
Serbia
75.2
2.5
24,510.8
6.3
31.8
61.9
25.4
B
10
Kosovo
10.4
3.3
13,547.0
9.7
32.8
57.4
..
B
11
Bosnia and Herzegovina
27.1
1.7
19,860.3
5.2
27.7
67.1
18.6
B
12
Montenegro
7.4
6.0
27,776.4
7.0
14.8
78.2
14.9
B
13
North Macedonia
14.8
1.0
23,423.9
8.1
24.7
67.3
33.2
B
14
Albania
23.0
3.4
18,059.9
20.9
24.2
54.9
6.3
B
15
Turkiye
1,108.0
4.5
34,414.2
7.0
31.9
61.1
34.3
C
16
Syrian Arab Republic
9.0
1.3
2,914.5
27.8
28.9
43.3
21.5
C
17
Lebanon
17.9
-0.2
12,293.3
2.1
4.6
93.3
19.9
C
18
Jordan
50.8
2.6
9,421.0
5.4
26.9
67.7
19.9
C
19
Israel
509.9
2.0
48,277.6
1.4
18.9
79.7
46.9
C
20
West Bank and Gaza
17.4
-5.5
5,307.6
7.0
21.4
71.6
7.2
C
21
Egypt, Arab Rep.
395.9
3.8
16,960.6
11.2
34.5
54.4
22.7
D
22
Libya
50.5
-1.7
17,703.9
1.2
63.8
35.0
16.1
D
23
Tunisia
48.5
0.4
12,332.1
10.0
24.7
65.3
27.6
D
24
Algeria
239.9
4.1
15,347.5
13.7
39.5
46.8
2.7
D
25
Morocco
141.1
3.2
8,782.3
13.4
26.5
60.1
41.2
D
26
GDP (US$ billion, current values)
Syrian Arab RepublicLatest available data: 2021
GDP growth (annual %)
Syrian Arab RepublicLatest available data: 2021
GDP per capita, PPP (constant 2017 international $)
Syrian Arab RepublicLatest available data: 2021
Agriculture, forestry, and fishing, value added (% of total value added)
Syrian Arab RepublicLatest available data: 2021
IsraelLatest available data: 2021
West Bank and GazaLatest available data: 2022
Industry (including construction), value added (% of total value added)
Syrian Arab RepublicLatest available data: 2021
IsraelLatest available data: 2021
West Bank and GazaLatest available data: 2022
Services, value added (% of total value added)
Syrian Arab RepublicLatest available data: 2021
IsraelLatest available data: 2021
West Bank and GazaLatest available data: 2022
Medium and high-tech manufacturing value added (% manufacturing value added)
KosovoNo data available
Some highlighted topics
Size of the economy and growth dynamics
In 2023, the total GDP of the Mediterranean region, calculated at current values, amounted to approximately 10,343 billion dollars, with a clearly prevailing weight of the European Union countries which account for 73.4% of the region's GDP. The weight of the countries of the Middle East (16.6%) and North Africa (8.5%) is smaller and Western Balkans account for just 1.5% of the total.
The three main countries of the European Union (France, Italy and Spain) together account for 2/3 of the area's total GDP (66.4%). Turkey (Gross Domestic Product equal to over 1,100 billion dollars) is the largest economy in the Middle East, in fourth place within the Mediterranean area, while Egypt (almost 400 billion dollars) is the country with the highest GDP in North Africa and Serbia the one with the largest economic system (GDP of over 75 billion dollars) among those in the Western Balkans region (see Figure 1).
Figure 1 – Gross Domestic Product in 2023 (US$ billion, current values) and average GDP growth rate in the period 2001-2023 (%)
...
Looking at the GDP dynamics in the period 2001-2023, the average annual growth rate of the European Union countries, apart from Malta (+4.3%), was significantly lower than that recorded in other countries of the Mediterranean area. In more detail, the countries of the European Union occupy seven of the last nine positions in terms of average GDP growth, with France, Italy, Spain, Portugal and Greece recording an average annual growth between 0.4% (Italy and Greece) and 1.5% (Spain).
The average growth rate in the other countries was at least 2.4% (Croatia, Slovenia, North Macedonia and Tunisia), while among the countries with high levels of GDP, Turkey experienced an average growth rate of 5% in the period considered, second only to Libya (over 7%) among the twenty-six countries in the area.
The trend of GDP per capita - calculated at Purchasing Power Parity (PPP) with constant values (in $ 2017) - highlights significant differences between countries, even within homogeneous geo-economic areas. More specifically, in the European Union (see Figure 2), Croatia and Malta recorded the most vigorous growth, exceeding 80% for both countries between 2001 and 2023. The dynamics in Italy and Greece are weak (+2.5% and +7.8% respectively). In the Western Balkans region, all countries show a very sustained trend, with a growth rate ranging between 88% (Montenegro) and 152% (Albania) over the 2001-2023 period. In the Middle East, in addition to Syria - which following a long phase of instability recorded a sharp contraction in per capita GDP (-41%) - also Lebanon (+3.7%) and Jordan (+6.1%) are characterized by weak growth. Israel's GDP per capita is widely the highest in the region (over 48 thousand dollars, +48.5% between 2001 and 2023), while Turkey (over 34 thousand dollars) shows a growth rate among the highest in the entire Mediterranean area (+144%). In North Africa, Libya - like Syria - experienced conditions of strong instability in the period considered but the contraction in GDP per capita was less pronounced (-8%). Libya’s GDP, around 18 thousand dollars in 2023, remains the highest among North African countries. GDP per capita growth in Algeria, Tunisia (around +30% for the two countries), Egypt and Morocco (above 60% in both cases) led to a significant reduction of differences in GDP levels among North African countries in 2023.
Figure 2 – GDP per capita, PPP. Years 2001-2023 (constant 2017 international $)
...
Production structure
The characteristics of the twenty-six countries in the Mediterranean area, in terms of different levels of development and endowment of resources, are clearly visible by observing the composition of the Value Added of the economies by macro-sectors (see Figure 3).
The incidence of the Agriculture, Forestry and Fishing sector (hereinafter "agricultural" or "primary" sector) in the countries of the European Union - in an advanced stage of tertiarization of their economies - is very low and does not exceed 3% in most cases. In reaches the maximum level in Greece (4.3% of the total value added). The weight is greater in the Western Balkans, between 6% and 10%, with a peak of almost 21% in Albania. Lebanon and Israel in the Middle East also show a very low incidence of the primary sector and an advanced economic structure, with a strong weight of services, as does Libya in North Africa (just 1.2% the incidence of the agricultural sector) but for opposite reasons, thanks to the strong incidence of industry (63.8% of total added value, the largest share in the entire Mediterranean area), especially extractive; in the other North African countries the weight of agricultural value added is high, between 10% (Tunisia) and 13.7% (Algeria).
Figure 3 – Composition of Value Added by macro-sectors. Year 2023 (%)
...
Within the manufacturing industry, the weight of “high value added” products from medium/hi-tech sectors signals the level of technological development achieved by a country and the ability of its production system to compete at an international level.
For most European Union countries this incidence is above 30%, with peaks of almost 52% in France. Other countries with a strong weight of such production are North Macedonia (33.2%), Turkey (34.3%) and, above all, Israel (almost 47% of total manufacturing). Morocco also records a very high incidence of medium/high technology production (41.2%) in fourth place in the Mediterranean area (see Figure 4).
Comparing the data for 2021 with 2011, we note a strong growth in the incidence of hi-tech production for Malta, Cyprus, North Macedonia and Morocco.
Figure 4 – Value Added of medium and high technology manufacturing (% of total manufacturing). Years 2011 and 2021
...
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Metadata
Indicators
Definition
GDP at purchaser's prices is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources. Data are in current U.S. dollars. Dollar figures for GDP are converted from domestic currencies using single year official exchange rates. For a few countries where the official exchange rate does not reflect the rate effectively applied to actual foreign exchange transactions, an alternative conversion factor is used.
Sources
World Bank Development Indicators, from World Bank and OECD
Methodology
Gross domestic product (GDP) represents the sum of value added by all its producers plus any product taxes and minus any subsidies not included in the value of the products. Value added is the value of the gross output of producers less the value of intermediate goods and services consumed in production, before accounting for consumption of fixed capital in production. The United Nations System of National Accounts calls for value added to be valued at either basic prices (excluding net taxes on products) or producer prices (including net taxes on products paid by producers but excluding sales or value added taxes). Both valuations exclude transport charges that are invoiced separately by producers. Total GDP is measured at purchaser prices. Value added by industry is normally measured at basic prices.
Notes
An economy's growth is measured by the change in the volume of its output or in the real incomes of its residents. The 2008 United Nations System of National Accounts (2008 SNA) offers three plausible indicators for calculating growth: the volume of gross domestic product (GDP), real gross domestic income, and real gross national income. The volume of GDP is the sum of value added, measured at constant prices, by households, government, and industries operating in the economy. GDP accounts for all domestic production, regardless of whether the income accrues to domestic or foreign institutions. Among the difficulties faced by compilers of national accounts is the extent of unreported economic activity in the informal or secondary economy. In developing countries a large share of agricultural output is either not exchanged (because it is consumed within the household) or not exchanged for money. Agricultural production often must be estimated indirectly, using a combination of methods involving estimates of inputs, yields, and area under cultivation. This approach sometimes leads to crude approximations that can differ from the true values over time and across crops for reasons other than climate conditions or farming techniques. Similarly, agricultural inputs that cannot easily be allocated to specific outputs are frequently 'netted out' using equally crude and ad hoc approximations. Data for OECD countries are based on ISIC, revision 4.
Presence in policy-oriented statistical systems
ENP-South Eurostat Data Browser: Area ' Economy and Finance'
Annual percentage growth rate of GDP at market prices based on constant local currency.
Sources
World Bank Development Indicators, from World Bank and OECD
Methodology
Gross domestic product (GDP) represents the sum of value added by all its producers plus any product taxes and minus any subsidies not included in the value of the products. Value added is the value of the gross output of producers less the value of intermediate goods and services consumed in production, before accounting for consumption of fixed capital in production. The United Nations System of National Accounts calls for value added to be valued at either basic prices (excluding net taxes on products) or producer prices (including net taxes on products paid by producers but excluding sales or value added taxes). Both valuations exclude transport charges that are invoiced separately by producers. Total GDP is measured at purchaser prices. Value added by industry is normally measured at basic prices.
Notes
An economy's growth is measured by the change in the volume of its output or in the real incomes of its residents. The 2008 United Nations System of National Accounts (2008 SNA) offers three plausible indicators for calculating growth: the volume of gross domestic product (GDP), real gross domestic income, and real gross national income. The volume of GDP is the sum of value added, measured at constant prices, by households, government, and industries operating in the economy. GDP accounts for all domestic production, regardless of whether the income accrues to domestic or foreign institutions. Among the difficulties faced by compilers of national accounts is the extent of unreported economic activity in the informal or secondary economy. In developing countries a large share of agricultural output is either not exchanged (because it is consumed within the household) or not exchanged for money. Agricultural production often must be estimated indirectly, using a combination of methods involving estimates of inputs, yields, and area under cultivation. This approach sometimes leads to crude approximations that can differ from the true values over time and across crops for reasons other than climate conditions or farming techniques. Similarly, agricultural inputs that cannot easily be allocated to specific outputs are frequently 'netted out' using equally crude and ad hoc approximations. Data for OECD countries are based on ISIC, revision 4.
Presence in policy-oriented statistical systems
SDG Goal 8, indicator 8.1.1; ENP-South Eurostat Data Browser: Area ' Economy and Finance'
Gross domestic product converted to international dollars using purchasing power parity rates. An international dollar has the same purchasing power over GDP as the U.S. dollar has in the United States.
Sources
World Bank Development Indicators from World Bank International Comparison Program and Eurostat-OECD PPP Programme
Methodology
PPP GDP is gross domestic product converted to international dollars using purchasing power parity rates. An international dollar has the same purchasing power over GDP as the U.S. dollar has in the United States. GDP at purchaser's prices is the sum of gross value added by all resident producers in the country plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources.
Notes
There are still significant limitations on the availability of reliable data. Information on consistent series of output in both national currencies and purchasing power parity dollars is not easily available, especially in developing countries, because the definition, coverage, and methodology are not always consistent across countries. For example, countries employ different methodologies for estimating the missing values for the nonmarket service sectors and use different definitions of the informal sector. SDG indicator 8.2.1.
Agriculture, forestry, and fishing corresponds to ISIC divisions 1-3 and includes forestry, hunting, and fishing, as well as cultivation of crops and livestock production. Value added is the net output of a sector after adding up all outputs and subtracting intermediate inputs. It is calculated without making deductions for depreciation of fabricated assets or depletion and degradation of natural resources. The origin of value added is determined by the International Standard Industrial Classification (ISIC), revision 4.
Sources
WeMed estimates of data from World Bank Development Indicators
Methodology
Value added is the value of the gross output of producers less the value of intermediate goods and services consumed in production, before accounting for consumption of fixed capital in production. The United Nations System of National Accounts calls for value added to be valued at either basic prices (excluding net taxes on products) or producer prices (including net taxes on products paid by producers but excluding sales or value added taxes). Both valuations exclude transport charges that are invoiced separately by producers.
Notes
Agricultural production often must be estimated indirectly, using a combination of methods involving estimates of inputs, yields, and area under cultivation. This approach sometimes leads to crude approximations that can differ from the true values over time and across crops for reasons other than climate conditions or farming techniques. Similarly, agricultural inputs that cannot easily be allocated to specific outputs are frequently 'netted out' using equally crude and ad hoc approximations.Note: Data for OECD countries are based on ISIC, revision 4.
Presence in policy-oriented statistical systems
ENP-South Eurostat Data Browser: Area ' Economy and Finance'
Industry (including construction) corresponds to ISIC divisions 05-43 and includes manufacturing (ISIC divisions 10-33). It comprises value added in mining, manufacturing (also reported as a separate subgroup), construction, electricity, water, and gas. Value added is the net output of a sector after adding up all outputs and subtracting intermediate inputs. It is calculated without making deductions for depreciation of fabricated assets or depletion and degradation of natural resources. The origin of value added is determined by the International Standard Industrial Classification (ISIC), revision 4.
Sources
WeMed estimates of data from World Bank Development Indicators
Methodology
Value added is the value of the gross output of producers less the value of intermediate goods and services consumed in production, before accounting for consumption of fixed capital in production. The United Nations System of National Accounts calls for value added to be valued at either basic prices (excluding net taxes on products) or producer prices (including net taxes on products paid by producers but excluding sales or value added taxes). Both valuations exclude transport charges that are invoiced separately by producers.
Notes
Ideally, industrial output should be measured through regular censuses and surveys of firms. But in most developing countries such surveys are infrequent, so earlier survey results must be extrapolated using an appropriate indicator. The choice of sampling unit, which may be the enterprise (where responses may be based on financial records) or the establishment (where production units may be recorded separately), also affects the quality of the data. Moreover, much industrial production is organized in unincorporated or owner-operated ventures that are not captured by surveys aimed at the formal sector. Even in large industries, where regular surveys are more likely, evasion of excise and other taxes and nondisclosure of income lower the estimates of value added. Such problems become more acute as countries move from state control of industry to private enterprise, because new firms and growing numbers of established firms fail to report. In accordance with the System of National Accounts, output should include all such unreported activity as well as the value of illegal activities and other unrecorded, informal, or small-scale operations. Data on these activities need to be collected using techniques other than conventional surveys of firms. Data for OECD countries are based on ISIC, revision 4.
Presence in policy-oriented statistical systems
ENP-South Eurostat Data Browser: Area ' Economy and Finance'
Proportion of medium and high-tech industry value added in total value added of manufacturing
Sources
World Bank Development Indicators, from United Nations Industrial Development Organization (UNIDO)
Methodology
Data are collected using General Industrial Statistics Questionnaire which is filled by NSOs and submitted to UNIDO annually. Data for OECD countries are obtained directly from OECD. Country data are also collected from official publications and official web-sites. Missing values at country level are imputed based on the methodology from Competitive Industrial Performance Report (UNIDO, 2017.
Notes
Conversion to USD or difference in ISIC combinations may cause discrepancy between national and international figures.
Services correspond to ISIC divisions 45-99 and they include value added in wholesale and retail trade (including hotels and restaurants), transport, and government, financial, professional, and personal services such as education, health care, and real estate services. Also included are imputed bank service charges, import duties, and any statistical discrepancies noted by national compilers as well as discrepancies arising from rescaling. Value added is the net output of a sector after adding up all outputs and subtracting intermediate inputs. It is calculated without making deductions for depreciation of fabricated assets or depletion and degradation of natural resources. The industrial origin of value added is determined by the International Standard Industrial Classification (ISIC), revision 3 or 4.
Sources
WeMed estimates of data from World Bank Development Indicators
Methodology
Value added is the value of the gross output of producers less the value of intermediate goods and services consumed in production, before accounting for consumption of fixed capital in production. The United Nations System of National Accounts calls for value added to be valued at either basic prices (excluding net taxes on products) or producer prices (including net taxes on products paid by producers but excluding sales or value added taxes). Both valuations exclude transport charges that are invoiced separately by producers.
Notes
In the services industry the many self-employed workers and one-person businesses are sometimes difficult to locate, and they have little incentive to respond to surveys, let alone to report their full earnings. Compounding these problems are the many forms of economic activity that go unrecorded, including the work that women and children do for little or no pay.
Presence in policy-oriented statistical systems
ENP-South Eurostat Data Browser: Area ' Economy and Finance'
