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Transatlantic Economy 2022: The US and Europe remain the most important markets for each other

Despite the pandemic, inflationary pressures, supply chain pressures and the war in Ukraine, the US and Europe are expected to show steady economic growth in 2022. According to estimates for 2021, last year was a year that ” broke records ”in many areas, as reported on the occasion of the presentation of the annual report” The Transatlantic Economy 2022 “, during a press conference held online with journalists from various countries.

In a world economy hit by surprises and constant shocks, the US and Europe remain each other’s most important markets and the most important geoeconomic base. The transatlantic economy produces 6 (six) trillion. dollars in total commercial sales annually and employs up to 16 million employees in reciprocal “onshored” jobs on both sides of the Atlantic. It is the largest and richest market in the world, accounting for half of total global personal consumption and almost a third of world GDP in purchasing power parity.

In particular, the transatlantic trade in goods reached an all-time high of $ 1.1 trillion by 2021. Flows to Europe from US foreign direct investment jumped to $ 253 billion, setting a record again. The same goes for the revenue from American subsidiaries earned in Europe, which is estimated to have reached $ 300 billion. Revenue from European subsidiaries in the US also reached a record $ 162 billion, while European direct investment flows to the US are estimated to be at their highest level since 2017 at $ 235 billion.

As Dr. Daniel Hamilton, Senior Fellow, Foreign Policy Institute, SAIS, Johns Hopkins University (study co-author), answering a question from APE-MPE, both sides last year increased investment and trade flows to an all-time high in history and now we are in an opportunity for transatlantic energy cooperation and we must invest in it, pursuing a common policy and a common vision. This will make it easier for 2022 to be a positive year in terms of results.

Referring to the war in Ukraine, Susan Danger, CEO, AmCham EU said that “we stand with the people who are suffering from the Russian invasion, which threatens the fundamental values ​​we support” and stressed that at this stage transatlantic cooperation is even more critical. and that strengthening relations must be a priority, adding that for their part, companies are taking action to support those affected by the war.

As Marjorie Chorlins, Senior Vice President for European Affairs, US Chamber of Commerce, pointed out, “it is important that we continue to emphasize the strengthening of US-European relations and that this crisis will highlight the need for unity.” .

In terms of transatlantic energy economy, the US has become Europe’s largest supplier of liquefied natural gas (LNG), accounting for – in 2021 – 26% of total LNG imported from EU member states and the United Nations. Kingdom.

According to the study, in January and February 2022, the US supplied more than half of all liquefied natural gas imports to Europe, more than ever before. Exports to Europe accounted for about 75% of all US liquefied natural gas, far exceeding exports to Asia. In addition, for the first time, US liquefied natural gas exports to Europe exceeded Russia’s total gas sales through pipelines.

US companies in Europe have also been the driving force behind Europe’s green growth, accounting for more than half of Europe’s long-term renewable energy deals since 2007. US companies represent three of the top four buyers of solar and wind power and are among the top ten buyers of renewable energy in Europe.

As Dr. Daniel Hamilton, Senior Fellow, Foreign Policy Institute, SAIS, Johns Hopkins University (study co-author) according to 2021 estimates the value of trade in goods and services between the 27 EU member states and the US amounted to 1.3 τρισ. euro. This value was 42% higher than that of trade between China and the 27 EU member states. In addition, the total stock of US direct investment in Europe is four times higher than in the Asia-Pacific region.

SOURCE: ΑΠΕ-ΜΠΕ

Source: Capital

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