Circular Economy Indicators in the European Union and their economic growth implications

This paper provides a comprehensive analysis of the circular economy in the European Union (EU) through the lens of seven key indicators: material flows, circular material use rate, material footprint, employment in circular sectors, gross value added, resource productivity, and material dependency. Drawing on 2023 Eurostat data, the study reveals a mixed picture of progress. While Northern and Western European countries show strong performance in recycling rates, resource efficiency, and economic value derived from circular activities, significant disparities persist across the EU, with Central, Eastern, and Southern regions lagging behind. The findings highlight the potential of the circular economy not only as an environmental imperative but also as a driver of economic growth and strategic resilience. However, structural gaps in infrastructure, policy implementation, and market readiness continue to hold back a cohesive transition. Based on these insights, the paper underscores the need for enhanced policy coordination, investment in innovation and skills, and improved data systems to ensure a more inclusive and effective circular economy across the Union. The study contributes to the literature by integrating environmental and socio-economic dimensions and offers evidence based recommendations to support a balanced and sustainable European transition.