Growth and Welfare. Correlations at the European Level

The effect of economic growth on well-being has become increasingly controversial over the last decade. This study aims to investigate the correlation between the evolution of domestic product and that of three pillars of welfare (health, financial status and social equity) over the last 10-20 years, using cross-country analyses for a group of 24 European economies. We have analyzed the impact of GDP growth on variables such as life expectancy, ratio of household financial liabilities to disposable income, risk of poverty or social exclusion, and others. The results indicate that, on the whole, countries with higher economic growth have experienced sounder well-being developments. However, in some countries, relatively strong economic performance has not materialized in a similar evolution of wellfare indicators. This confirms the lack of economic growth in achieving well-being and, implicitly, the need to direct decision-makers towards complementary social policies.