Luxembourg Leads Global Education Spending Per Primary Student, OECD Data Shows
Countries are taking markedly different approaches to financing primary education, with the amount spent on each student varying by tens of thousands of dollars across the economies examined by the Organisation for Economic Co-operation and Development (OECD).
According to the OECD’s Education at a Glance 2024, Luxembourg recorded the highest annual expenditure per full-time equivalent student at the primary level among the countries shown, at approximately $25,584 in purchasing-power-parity-adjusted US dollars. Norway followed at about $18,037, while Iceland ranked third with roughly $16,786.
Nordic Countries Among the Highest Spenders
The data show particularly high spending levels across several European and Nordic economies. Denmark recorded about $15,598 per primary student, followed by Austria at $15,415.
The United States ranked next at approximately $15,270, while Sweden spent around $15,037 per student. South Korea, Belgium and Italy also appeared among the countries with relatively high expenditure, at approximately $14,873, $13,987 and $13,799 respectively.
The figures are not simply a measure of how much money governments allocate to schools. Differences in teacher salaries, staffing levels, infrastructure costs, student-teacher ratios and other characteristics of national education systems can have a major effect on expenditure per student. The OECD specifically notes that Luxembourg’s high spending is associated in part with low student-to-teaching-staff ratios and relatively high teacher salaries.
OECD Average Nears $12,000
Across OECD economies, average annual expenditure per full-time equivalent student at the primary level stood at approximately $11,900 in 2021.
The figure rises at higher levels of education. Average spending reached about $13,300 per secondary student and approximately $20,500 per tertiary student.
The OECD explains that higher education can require more specialised facilities, equipment and research investment, helping to explain the higher expenditure at tertiary level.
Wide Gap Between Countries
At the lower end of the chart, Mexico recorded approximately $2,933 per primary student, while Romania spent about $3,346 and Türkiye around $4,038.
The difference between Luxembourg and Mexico illustrates the enormous variation in education resources available on a per-student basis. However, higher spending does not automatically guarantee better educational outcomes. How resources are distributed and used can be just as important as the overall amount invested.
The OECD also cautions that national differences reflect broader economic conditions. GDP per capita, teacher compensation and the organisation of education systems all contribute to variations in expenditure.
Education Investment Remains a Major Policy Issue
The figures highlight the financial choices governments face when attempting to improve education systems. Primary education is particularly important because it establishes foundational skills and is generally part of compulsory schooling.
Across OECD countries, education from primary through tertiary levels accounted for around 10% of total government expenditure on all services in 2021, according to the OECD. Nearly three-quarters of that education spending was directed toward primary and secondary education.
The latest figures therefore underline a broader global debate: increasing education budgets can provide schools with more resources, but policymakers also need to ensure that funding reaches classrooms effectively and supports teachers, learning environments and students.
The OECD’s data demonstrate that there is no single global model for education financing. Countries spend vastly different amounts per student, reflecting differences in economic capacity, education priorities and the structure of their school systems.
