CLUSTERING OF EUROPEAN COUNTRIES ACCORDING TO THE LEVEL OF SOCIO-ECONOMIC WELL-BEING

This study analyzes the standard of living as a fundamental indicator of socio-economic development and a key measure of a country's success on the international stage. A comparative analysis of European countries is considered in the research and it helps to identify the strengths and weaknesses of their socio-economic models, highlight key challenges, and justify priority areas for public policy aimed at improving citizens’ quality of life. The relevance of the research is due to the need for an objective assessment of socio-economic differentiation within the European Union and the positioning of Ukraine in this context. Understanding the factors driving differences in living standards is essential for developing effective convergence strategies and addressing existing inequalities. The study employs multidimensional statistical methods, particularly cluster analysis, to move beyond simple rankings and provide a more structured and nuanced view of socio-economic development across Europe. The research aims to support the formation of a comprehensive vision of social progress and serve as a tool for monitoring and evaluating socio-economic policy outcomes. This article applies several clustering techniques to analyze European countries, including hierarchical clustering and k-means method. The elbow method was used to determine the number of clusters. The analysis was performed using Python as the statistical computing environment. The clustering outcomes are visualized, with particular emphasis on the use of a dendrogram. The study also revealed a clear distinction between highly developed countries of Western and Northern Europe, Eastern European and Baltic countries, as well as a group of Southern European countries. The differences between the clusters were explained and interpreted. Special attention is given to indicators such as GDP per capita, unemployment rate, life expectancy, Human Development Index, and Happiness Index. The value of the study lies in its exploration of these dimensions, offering deeper insights into the determinants of high living standards and their interactions within the European context.