Human capital and economic growth in EU countries

One of the fundamental objectives of any country is to improve its economic performance and ensure stable economic development and sustainable economic growth. Recently, human capital has become one of the most important factors in the growth of national performance, and its importance is growing in the context of the development of the digital economy. To promote economic growth, it is essential to invest in raising the level of human capital, particularly in education, health, science and research. However, it is not only the amount of these investments that is important, but also their efficient use and the government's ability to ensure favourable conditions for their long-term return. This paper aims to identify the evolution of human capital in EU countries by comparing two alternative methods, analysing its level in relation to economic growth and then identifying the dynamics of the patterns of change in these variables across member states. The research was carried out for 2013-2022 and 2023, respectively, based on statistical data from Eurostat and the United Nations Development Programme. The level of human capital was expressed using a multi-criteria method (the standardised variable method) and the Human Development Index. The position of the countries based on the value of the integral indicator calculated by the standard variable method, the HDI and the economic performance measured by the GDP indicator were compared through percentiles. A single-factor analysis of variance was used to assess the dynamics of the development of the indicators under study. The results of our research show that northern and western European countries performed better in both human capital and economic performance assessments than southern and eastern and central Europe, respectively. This is due to the different levels of investment in education, health, culture, research and development, and the different values of the outcome indicators. Sufficient investment in human capital is, therefore, essential for economic prosperity and sustainable economic growth.