In this article, we will talk about 19 cheap English-speaking countries in Europe. We will also be discussing the economy of Europe. If you want to skip our detailed analysis, you can go directly to 5 Cheap English Speaking Countries in Europe.
Economic Outlook for Europe
According to the Regional Economic Outlook – Europe report by the International Monetary Fund (IMF), regional growth for Europe was expected to slow down from 2.7% in 2022 to 1.3% in 2023. However, the growth rate is expected to improve to 1.5% in 2024.
The European economy has successfully tackled global economic challenges, including the pandemic and the energy shock following the Russia-Ukraine war. Currently, the economy faces the issue of fixing price stability while maintaining long-term green growth. Moreover, the ongoing impacts of climate change and rising inflation have also contributed to a slower growth rate for 2023. In addition, central banks in the European region have tightened their monetary policies, forcing governments to scale back fiscal support. On January 25, CNBC reported that the European Central Bank decided to keep interest rates steady after their January meeting with no apparent signs of cutting them. Interest rates in the European region rose to an all-time high of 4% in September 2023 and haven’t been reduced since.
On the bright side, headline inflation, i.e. inflation including commodities such as food and energy, is declining. As per the report, headline inflation in Europe is projected to fall from 5.8% in 2023 to 3.3% in 2024 for advanced economies and from 11.9% in 2023 to 5.8% in 2024 for emerging economies. Ease in supply constraints and a drop in commodity prices are the contributing factors behind the decline. You can also look at 24 Least Developed Countries in Europe in 2024 and 20 Cheapest English-Speaking Countries to Retire.
Labor Market Trends in Europe
The labour market in Europe has shown resilience despite the economic challenges and slow growth. According to the Labor Market and Wage Developments report by the European Commission, the unemployment rates in 2022 and for the first half of 2023 were 6%, which is the lowest since the EU aggregate has been available. Moreover, the employment rates also grew at an annual rate of 2% in 2023, mainly due to a strong recovery from the pandemic and job creation in the market.
Another notable trend contributing to employment growth is high participation rates by women and old-age workers and increased job retention rates. Moreover, job retention schemes introduced during the pandemic fueled the growth by preserving labour market attachment. According to the EU report, the participation rates for both men and women increased between the first quarter of 2020 and the fourth quarter of 2022, with a growth of 0.84% for men and 1.74% for women.
Furthermore, the European region has witnessed an increase in nominal wages. The growth in the nominal wage is attributed to tight labour market conditions and rising inflation. The nominal wage in the region grew by 6% in the second quarter of 2023. However, real wages declined during this period, leading to a drop in real gross household income. In response, the government has taken measures to manage the decline, including tax reduction, increased transfer of payments to households, and an increase in the minimum wage. It is forecasted that as a result of government efforts, wages will grow at a moderate rate of 1.5% in 2024. You can also look at 20 Countries with the Lowest Minimum Wage in the World and 12 European Countries with the Best Economy Right Now.
Major Players Leading the European Economy
Some of the players leading the European economy include TotalEnergies SE (EPA:TTE), Stellantis NV (BIT:STLAM), and BP PLC (LON:BP).
TotalEnergies SE (EPA:TTE) is a French multinational oil and gas company and a leading player in the European economy. On January 23, TotalEnergies SE (EPA:TTE) reported it signed an agreement to acquire Kyon Energy Solutions GmbH, Germany’s leading battery storage developer for an upfront cash consideration of 90 million euros, and earn-out payments based on development milestones.
Stellantis NV (BIT:STLAM) is another major player in the European market. It is a multinational automobile company headquartered in Amsterdam, Netherlands. Some of the leading brands by Stellantis NV (BIT:STLAM) include Alfa Romeo, Fiat, Chrysler, and Dodge. On January 16, Stellantis NV (BIT:STLAM) reported the appointment of Carlos Zarlenga as the Chief Operating Officer of its operations in North America. Carlos Zarlenga will succeed Mark Stewart, with effect from February 1.
BP PLC (LON:BP) is another leading energy company operating in Europe. Based in London, UK, BP PLC (LON:BP) operates in more than 70 countries around the globe. On January 17, BP PLC (LON:BP) reported that it had agreed to acquire GETEC ENERGIE GmbH, an independent energy supplier in Germany. The financial details of the transaction were not disclosed and the acquisition will be settled later this year.
Now that we have discussed the economic outlook of Europe, let’s look at the 19 cheap English-speaking countries in Europe.
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Our Methodology
To compile our list of 19 cheap English-speaking countries in Europe, we relied on two key indicators: the English Proficiency Index 2023 by English First and the price level indices and real expenditures for 2022 by Eurostat. The English Proficiency Index uses English Proficiency (EF EPI) scores to rank countries across different proficiency bands, including very high, high, moderate, low, and very low. Thus, to get a list of English-speaking countries in Europe, we only selected European countries ranking high or above, i.e. countries with an EF EPI score of at least 550. Next, we consulted the Eurostat data set for each country’s price level index for 2022 to compile our list of 19 cheap English-speaking countries in Europe. Please note that the list is ranked in descending order of the Price Level Index.
19 Cheap English-Speaking Countries in Europe
19. Denmark
Price Level Index: 147.1
EF EPI Score 2023: 615
Denmark is a Scandinavian European country. While the official language of Denmark is Danish, it has a high proficiency in English as well. Denmark has an EF EPI score of 615 and a Price Level Index of 147.1.
18. Sweden
Price Level Index: 129.2
EF EPI Score 2023: 609
Sweden is another Scandinavian European Country. With an EF EPI Score of 609 and a Price Level Index of 129.2, Sweden ranks 18th in our list of 19 cheap English-speaking countries in Europe.
17. Finland
Price Level Index: 128.1
EF EPI Score 2023: 597
Finland is situated in northern Europe and is considered one of the world’s most beautiful countries. Finland has a population of approximately 5.56 million, and Finnish and Swedish are its official languages. Moreover, it is ranked as the 14th most proficient country in terms of the English language, as per EF EPI 2023 data.
16. Netherlands
Price Level Index: 120.8
EF EPI Score 2023: 647
With a Price Level Index of 120.8 and EF EPI score of 647, the Netherlands ranks as the 16th cheapest English-speaking country in Europe. Moreover, it became a member of the European Union in 1958 and has Dutch as its official language.
15. Belgium
Price Level Index: 117.7
EF EPI Score 2023: 608
Belgium is a federal constitutional monarchy that has been part of the European Union since January 1, 1958. Though the official languages of Belgium are Dutch, French, and German, it ranks high in English proficiency with an EF EPI Score of 608.
14. Austria
Price Level Index: 116.2
EF EPI Score 2023: 616
Austria is a landlocked country in Central Europe. With Vienna as its capital and German as its official language, the country ranks well in English proficiency and has a Price Level Index of 116.2.
13. Germany
Price Level Index: 109.7
EF EPI Score 2023: 604
Germany ranks 13th in our list of cheap English-speaking countries. The country is administered under a federal parliamentary republic system with German as its official language. Moreover, Germany has a Price Level Index of 109.7 and an EF EPI Score of 604.
12. Estonia
Price Level Index: 93.1
EF EPI Score 2023: 570
Estonia is situated in the northern region of Europe. With a population of approximately 1.37 million, it is governed by a parliamentary system. While the official language of Estonia is Estonian, it also ranks as a high English proficiency country with an EF EPI score of 570. It is also a cheap country with a Price Level Index of 93.1.
11. Portugal
Price Level Index: 86.4
EF EPI Score 2023: 607
Portugal is a country situated in the south of Europe and borders Spain. It has a population of approximately 10.5 million and follows a semi-presidential form of government. Portugal has a Price Level Index of 86.4 and ranks well in English proficiency with an EF EPI score of 607.
10. Greece
Price Level Index: 84.7
EF EPI Score 2023: 602
With a Price Level Index of 84.7 and an EFP EPI score of 602, Greece ranks as Europe’s 10th cheapest English-speaking country. Lots of Islands and beaches characterize the country’s geography.
9. Slovakia
Price Level Index: 80.2
EF EPI Score 2023: 587
Slovakia is a landlocked central European country run by a parliamentary democratic republic. It has a population of approximately 5.43 million, with Slovak being its official language. Slovakia has a Price Level Index of 80.2 and an EF EPI Score of 587, making it the 9th cheapest English-speaking country in Europe.
8. Czech Republic
Price Level Index: 78.4
EF EPI Score 2023: 565
The Czech Republic, also known as Czechia, is a landlocked country in Central Europe. While the official language of the Czech Republic is Czech, it ranks among countries with high English proficiency. Czechia has an EF EPI Score of 565 and a Price Level Index of 78.4.
7. Lithuania
Price Level Index: 74.4
EF EPI Score 2023: 576
Lithuania is a parliamentary republic that became part of the European Union in 2004. It has a population of approximately 2.86 million, and Lithuanian as its official language. Lithuania ranks 7th on our list, with a Price Level Index of 74.4 and an EF EPI Score of 576.
6. Croatia
Price Level Index: 68.9
EF EPI Score 2023: 603
Croatia is located at the crossroads of central and southeastern Europe. Croatia’s official language is Croatian, however, it ranks among countries with very high proficiency in English and has an EF EPI score of 603. It is also a considerably cheap country with a Price Level Index of 68.9.
Click here to see 5 Cheap English Speaking Countries in Europe.
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Disclosure: None. 19 Cheap English Speaking Countries in Europe is originally published on Insider Monkey.
