Review article
https://doi.org/10.32676/n.11.1.9
Multivariate analysis of macroeconomic heterogeneity among European union countries in 2024
Zlatko Čehulić
orcid.org/0000-0002-1817-2471
; Croatian National Bank
Rajka Hrbić
orcid.org/0000-0001-7781-908X
; Croatian National Bank
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.
Keywords
Hrčak ID:
341060
URI
Publication date:
12.12.2025.
Visits: 738 *