Moving Beyond GDP: Interconnections Between Circular Economy and Sustainability in Europe

Recently, there has been much talk about going beyond gross domestic product (GDP) as a sole measure of the country’s well-being and future development to tackle emerging environmental and social challenges at a global level. As it is, GDP is certainly very informative regarding a country’s economic performance; however, it is completely silent on vital issues of intergenerational equity, environmental sustainability, and general well-being. This is where the big opportunity of transitioning to a circular economy lies, which can be a viable alternative of making it viable to produce and consume sustainability by focusing on regenerating resources and reducing waste. The article explores the relationships among the post-GDP growth trajectory, rise of the circular economy, and sustainable development in European countries for the period covering 2019–2023. Having considered the discussion from theoretical and policy angles, we supported the argument with statistical facts drawn from the Eurostat database regarding circular material use rates, resource productivity, and CO2 reductions. Our results, derived from multiple linear regression models, show a positive and significant relationship between circular economy practices and environmental indicators, further strengthening the argument that circularity is vital to sustainable well-being. More specifically, we focus on Italy, which has already established itself as one of the leading countries in Europe regarding circularity and resource productivity output: so far due to an increasing involvement of small and medium-sized enterprises. The results show that the changeover to the economic circular models requires integrated policies and a new vision of development beyond just economic growth. Quite finally, we emphasize the need for adopting new multidimensional indicators capable of capturing real economic, social welfare, and environmental health in European nations.