In this article we will discuss 17 countries with the best education in Europe. If you wish to skip our detailed analysis, you can go directly to the 5 Countries With The Best Education In Europe.
According to research by Morgan Stanley, the global education market is poised to grow from $6 trillion in 2022 to $8 trillion by 2030. The global spending on education is also expected to drop from 5.9% of the global gross domestic product (GDP) in 2022 to 5.3% of the global GDP in 2030. The kindergarten to twelfth grade is the largest and fastest-growing segment in global education. This segment is estimated to grow 4% annually starting from 2022 and will reach a staggering $4.3 trillion by 2030. The segment will claim 54% of the global spending on education by 2030 as well. You can also check out: 20 Countries with the Best Education.
Enrollment Decline: Higher Education’s Battle with Soaring Inflation
The global education system is experiencing many challenges. One of the arduous challenges is the decreasing student enrollment in higher education institutions because of rising inflation. According to an article by McKinsey & Company, since 2010, student enrollment has dropped by 8% in private and 10% in public four-year institutions. A further 8% drop is expected between 2026 and 2030. The escalating inflation rates have hiked the operating costs and sticker prices for institutions, adding to the difficulty of already torn students.
The lofty cost of getting a higher education poses a barrier to entry for prospective students. This impact was evident in the dropping enrollment rates even before the pandemic hit. The drop was especially noticeable in the institutions with a small student body. Institutions with less than 3000 students were facing an average decline of 4.7% per year.
Higher education institutions are well aware of the problem and are working to overcome this challenge. The goal is to provide quality education without passing the cost threshold. This problem has led many institutions to come together through partnerships, mergers, and acquisitions. According to McKinsey, the number of mergers and acquisitions in higher education has nearly tripled from only eleven in 2001 to 2005 to thirty-one in 2016 to 2020.
M&A could have a profound impact on the finances of both the students and the institutions. According to an article by Inside Higher Ed, Delaware State University acquired Wesley College in July 2021, causing tuition fees to drop by 74% for Delaware residents and 37% for non-Delaware residents. Before the acquisition, Wesley struggled financially and was on the Department of Education’s heightened cash monitoring list in 2019. M&A helps both the institution being acquired and the institute acquiring. In the case of Wesley, the financial and enrollment issues eased out while it enabled Delaware State University to attain diversity in the student body and add new programs to its catalog organically.
Major Players in the Education Industry
Coursera Inc. (NYSE:COUR), initially launched by two Stanford professors, is one of the biggest names in education today. The company collaborates with reputable universities and colleges across the globe to present its 136 million registered learners with certifiable courses. Collaboration with higher education institutions helps the company reach the target audience while simultaneously facilitating the institutions to educate their students. On August 2, Coursera Inc. (NYSE:COUR) announced the launch of its expanded industry micro-credential program with the University of Texas System. The course will not charge anything for enrollment to all interested UT students. Furthermore, it will benefit almost 240,000 UT students to access 35 entry-level Professional Certificates.
Another major player in the education market is Stride Inc. (NYSE:LRN). The company provides personalized learning opportunities to its students through online courses and training. MedCerts by Stride Inc. (NYSE:LRN) is a healthcare and IT-centric company that provides certificates and training. The company incorporates the latest tech, including artificial intelligence, to benefit its students. On November 9, MedCerts by Stride Inc. (NYSE:LRN) announced the launch of its first generative AI healthcare training program. The generative AI model facilitates training by providing trainees with realistic patient scenarios they could encounter in the real world. Student training through the generative AI simulation is expected to increase their chances of success in the real world. You can also check out: 15 Best AI Tools for Education in 2023.
Grand Canyon Education, Inc. (NASDAQ:LOPE) is a major player in the education industry. On November 2, the company reported earnings for the fiscal third quarter of 2023. The company reported an EPS of $1.26 and beat estimates by $0.17. The company’s revenue for the quarter grew by 6.32% and amounted to $221.9 million, ahead of market consensus by $2.29 million. As of November 15, Grand Canyon Education, Inc. (NASDAQ:LOPE) has surged 28.12% over the past six months. Here are some comments from the company’s earnings call:
“GCE had a remarkable quarter, exceeding enrollment expectations by producing online new starts that were approximately 20% over the prior year, in our largest start period of the year, and also producing greater than expected retention numbers, exceeding revenue guidance estimates at midpoint by $2.4 million, and producing an $0.18 beat in adjusted diluted earnings per share to consensus. Judging by these results and the lead flow for the month of September, October, and November. There has never been greater interest in what is happening at Grand Canyon Education and its partner Grand Canyon University as well as the other 24 partners.”
As universities and companies are working to facilitate students, some countries are also investing heavily in education to improve the quality of education. We have listed the countries with the best education system in Europe.
17 Countries With The Best Education In Europe
Our Methodology
To make our list of countries with the best education in Europe, we initially looked at the government expenditure on education as a percentage of GDP. The rationale for choosing this metric was that if a government spends a larger chunk of GDP on education, it will have a better education system. The quality of the education system is a very subjective concept. Therefore, this metric enables us to quantify our search to some degree. We have sourced our data directly from UNESCO. The latest data available for government expenditure on education as a percentage of GDP is 2021. Considering this limitation, we introduced our second metric, the number of high-ranked universities based on QS World University Rankings 2024. The ranking includes only the top 1,500 institutions across the globe.
We initially sorted our list based on government expenditure and then by the number of high-ranked universities. The list is in ascending order, with the country with the best education system mentioned at the end.
An important note: Russia is part of both Asia and Europe and for our article, we have considered it among European countries.
17 Countries With The Best Education In Europe
17. Ireland
Government Expenditure on Education as a Percentage of GDP 2021: 2.98%
Number of Universities in the QS World Rankings 2024: 8
Ireland offers one of the best education in Europe. The country has 8 top-ranked universities according to the QS ranking, including Trinity College Dublin and University of Galway. The country also invests heavily in education and, in 2021, allocated 2.98% of the GDP to education.
16. Romania
Government Expenditure on Education as a Percentage of GDP 2021: 3.25%
Number of Universities in the QS World Rankings 2024: 13
Romania has 13 high-ranked universities. The Babes-Bolyai University and the University of Bucharest are noteworthy. The country spent 3.25% of its GDP on education in 2021.
Coursera Inc. (NYSE:COUR), Stride Inc. (NYSE:LRN), and Grand Canyon Education, Inc. (NASDAQ:LOPE) are some of the most prominent names in the education and training industry.
15. Russia
Government Expenditure on Education as a Percentage of GDP 2021: 3.7%
Number of Universities in the QS World Rankings 2024: 48
Russia provides one of the best education in Europe. The country is home to 48 high-ranking higher education institutes. The Lomonosov Moscow State University, Saint Petersburg State University, and Bauman Moscow State Technical University are some of the top-ranked universities in the world. In 2021, the government expenditure on education comprised 3.7% of the total GDP.
14. Greece
Government Expenditure on Education as a Percentage of GDP 2021: 4.06%
Number of Universities in the QS World Rankings 2024: 8
Greece is one of the European countries with the best education system. The country spent 4.06% of the total GDP on education in 2021. The country has some of the most noteworthy institutes including the National Technical University of Athens and the National and Kapodistrian University of Athens.
13. Italy
Government Expenditure on Education as a Percentage of GDP 2021: 4.13%
Number of Universities in the QS World Rankings 2024: 42
Italy provides quality education to its students. In 2021, 4.13% of the total GDP was allocated for education. The country also attracts massive numbers of international students every year. Politecnico di Milano and Sapienza University of Rome are the top universities in the country.
12. Germany
Government Expenditure on Education as a Percentage of GDP 2021: 4.53%
Number of Universities in the QS World Rankings 2024: 49
Germany offers one of the best education in Europe. The company has 49 top-ranked universities according to the QS ranking, including the Technical University of Munich, Ludwig-Maximilians-Universität München, and Ruprecht-Karls-Universität Heidelberg. The country also invests heavily in education and, in 2021, allocated 4.53% of the GDP to education.
11. Spain
Government Expenditure on Education as a Percentage of GDP 2021: 4.59%
Number of Universities in the QS World Rankings 2024: 35
Spain is also a European country that provides quality education. Spain is home to 35 top-ranked universities, including Universitat Autònoma de Barcelona, Universitat de Barcelona, and Complutense University of Madrid. In 2021, education accounted for 4.59% of the total GDP spending.
10. Portugal
Government Expenditure on Education as a Percentage of GDP 2021: 4.71%
Number of Universities in the QS World Rankings 2024: 8
Portugal is one of the countries with the best education in Europe. The country had eight universities in the top 1500 universities in the world. Some noteworthy names include the University of Porto, the University of Lisbon, and the University of Aveiro. In 2021, the government expenditure on education as a percentage of GDP was 4.71%.
9. Poland
Government Expenditure on Education as a Percentage of GDP 2021: 4.94%
Number of Universities in the QS World Rankings 2024: 22
Poland has some of the best universities in Europe. Some noteworthy names include the University of Warsaw, Jagiellonian University, and Warsaw University of Technology. In 2021, the government expenditure on education as a percentage of GDP amounted to 4.94%.
8. Hungary
Government Expenditure on Education as a Percentage of GDP 2021: 5%
Number of Universities in the QS World Rankings 2024: 11
Hungary is also a European country that is inclined towards education. The country prioritizes vocational training alongside traditional education. Some of the high-ranked universities in Hungary include the University of Szeged, the University of Debrecen, and Eötvös Loránd University. In 2021, the country spent 5% of its GDP on education.
7. Switzerland
Government Expenditure on Education as a Percentage of GDP 2021: 5.04%
Number of Universities in the QS World Rankings 2024: 11
Switzerland offers one of the best education in Europe. Some of the most noteworthy names in higher education include the University of Zurich, ETH Zurich – Swiss Federal Institute of Technology, and EPFL. In 2021, government expenditure on education as a percentage of GDP was 5.04%.
6. Netherlands
Government Expenditure on Education as a Percentage of GDP 2021: 5.14%
Number of Universities in the QS World Rankings 2024: 13
The Netherlands is one of the countries with the best education in Europe. The country has high-ranked universities like Delft University of Technology, the University of Amsterdam, and Utrecht University. The government spent 5.14% of the GDP on education in 2021.
Some of the top education technology stocks to buy according to hedge funds include Coursera Inc. (NYSE:COUR), Stride Inc. (NYSE:LRN), and Grand Canyon Education, Inc. (NASDAQ:LOPE).
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Disclosure: None. 17 Countries With The Best Education In Europe is originally published on Insider Monkey.