The impact of economic security on economic growth in European Union countries

Abstract

Economic security is a relatively young discipline within the field of economic science, yet it plays a critical role in national security. Despite its importance, it has historically received insufficient attention from researchers. Economic security is essential for achieving economic sovereignty, fostering sustainable development, implementing effective social policies, protecting society from environmental risks, and enhancing national competitiveness in an increasingly interconnected global economy. An effective economic security system enables a country to identify threats to its national economic interests proactively, thereby preventing potential damage to the socio-economic structure. Unfortunately, in most cases a comprehensive understanding of economic security often emerges only after economic threats have materialized. In today’s rapidly evolving world, ensuring economic security has become one of the primary priorities for nations, serving as the cornerstone of national security and development. The dynamic nature of global development continuously alters the risks associated with economic security, making it imperative for countries to identify and mitigate these risks promptly. The issue of economic security has gained increased attention, particularly as economies have become more open and integrated into global economic processes. Although economic security is often conceptualized as a social phenomenon that safeguards the vital interests of individuals, society, and the state from potential dangers and threats, there remains no universally accepted definition within the broader context of national security. The main objective of this article is to analyze how economic security impacts economic growth in EU countries. The study shows that for weak economies, a high level of GDPpC growth can be provided even with relatively low development indicator values. At the same time, for advanced economies, high values in these indicators are a prerequisite for continued growth. Based on the model created in the study, it is possible to distribute countries by clusters. Such an interpretation is necessary in order to understand in which direction a country’s economy should develop to ensure sustainable development. Thus, the proposed method makes it possible to objectively assess the potential of the country’s economic development.