September 10, 2025

Evaluating the Impact of Material Efficiency in the Circular Economy on Economic Growth in European Countries

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Resource productivity significantly contributes to GDP per capita growth, particularly in EU27 countries.
The recycling rate and domestic material consumption show a complex relationship with economic growth without strong significance.
Efficient resource use is essential for sustainable economic development within the circular economy framework.
Policymakers must prioritize resource efficiency strategies to balance material efficiency and economic objectives.

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Panel data analysis reveals resource productivity drives GDP per capita growth in EU27, indicating the importance of circular economy practices.

Popović et al. (2024) studied this question.

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Panel data analysis reveals resource productivity drives GDP per capita growth in EU27, indicating the importance of circular economy practices.