Circular economy and macroeconomic performance: a comparison of Central and Western European EU countries

Abstract

In the context of the growing importance of sustainable development and efficient resource utilization, the circular economy (CE) is becoming a key component of economic policy in EU countries. In the present study, the dependencies of selected CE indicators on three key macroeconomic variables were modelled across two distinct groups of European countries, specifically the Central European bloc (Slovakia, Poland, Czechia) and the Western European bloc (Austria, Switzerland, Germany). Agility captures the responsiveness of CE performance to macroeconomic conditions. To quantify these relationships, multiple linear regression was applied, enabling the assessment of the sensitivity of CE performance to macroeconomic dynamics characterized by GDP per capita, population size, and employment rate. The results provide comparative insights into how structural economic conditions influence progress toward a CE, defined by the recycling rate and the development of domestic material consumption within the examined country blocs. The findings highlight clear structural differences between the two blocs, with Western Europe demonstrating more mature and efficiency driven environmental performance, while Central Europe exhibits features of an economy in transition. The findings advance the understanding of the macroeconomic determinants of CE performance and underscore the need for policies that translate economic growth into measurable environmental efficiency gains.