text 4 THE ECONOMY OF EUROPE

THE ECONOMY OF EUROPE
The economy of Europe comprises more than 710 million people in 48 different states. Like other continents, the wealth of Europe's states varies, although the poorest are well above the poorest states of other continents (except Australia) in terms of GDP and living standards. The difference in wealth across Europe can be seen in a rough East-West divide. Whilst Western European states all have high GDPs and living standards, many of Eastern Europe's economies are still emerging from the collapse of the communist Soviet Union and former Yugoslavia.
Europe was the first continent to industrialize - led by the United Kingdom in the 18th century - and as a result, it has become one of the richest (measured by GDP per capita) continent in the world today. Europe's largest national economy is that of Germany, which ranks fourth globally in nominal GDP, and fifth in purchasing power parity (PPP) GDP; followed by France, which ranks fifth globally in nominal GDP and sixth in PPP GDP; and the United Kingdom, ranking sixth globally in nominal GDP. The end of World War II has since brought European countries closer together, culminating in the formation of the European Union (EU) and in 1999, the introduction of a unified currency - the euro. If the European Union was taken as a single country, today it would be the world's largest economy - see List of countries by GDP (PPP).