Assessing the Prosperity of European Nations: A Cluster Analysis Based Approach

This study employs a multifaceted analytical approach to evaluate prosperity indicators across European countries, utilizing data from EUROSTAT spanning 2017 to 2022. Applying variable clustering and hierarchical clustering techniques, the research identifies three distinct clusters based on social, economic, and environmental indicators. The results are justifiable, with slight variations from real-case scenarios attributed to factors such as differences in considered factors across studies and variations in the study periods. The comprehensive methodology provides a step-by-step account of the hierarchical clustering and heatmap generation process, ensuring transparency and clarity in the analysis of Social, Environmental, and Economic indicators among different European countries. The study's insights provide valuable implications for policymakers, guiding targeted interventions to address unique challenges and opportunities within each cluster, thereby contributing to a more equitable and sustainable future across European countries.