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Multivariate Analysis of Macroeconomic Heterogeneity among European Union Countries in 2024 Cover

Multivariate Analysis of Macroeconomic Heterogeneity among European Union Countries in 2024

Open Access
|Dec 2025

Abstract

The aim of this study was to examine macroeconomic heterogeneity among European Union countries in 2024 and to identify latent economic patterns and country groups with similar characteristics. The analysis employed hierarchical and non-hierarchical cluster analysis, discriminant analysis, principal component analysis (PCA), and factor analysis of macroeconomic variables: gross domestic product, unemployment rate, inflation (HICP), public debt, and budget surplus. The results reveal the existence of four clearly separated clusters of countries, differing in terms of economic growth, inflation, employment, fiscal balance, and public debt, with noticeable geographical and development-based distinctions among clusters. Discriminant analysis confirmed the stability of the identified groups, while PCA and factor analysis allowed for reducing the complexity of the data into key dimensions, such as fiscal stability, labour market performance, and public debt. The study concludes that the EU remains divided into distinct macroeconomic profiles, highlighting the importance of continuously monitoring heterogeneity and its implications for economic policies. The findings suggest that targeted fiscal coordination and cohesion policy interventions could support economic convergence and stability across member states.

DOI: https://doi.org/10.32676/n.11.1.9 | Journal eISSN: 1849-9066
Language: English
Published on: Dec 4, 2025
Published by: Notitia d.o.o
In partnership with: Paradigm Publishing Services
Publication frequency: 1 issue per year

© 2025 Zlatko Čehulić, Rajka Hrbić, published by Notitia d.o.o
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

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