The Transatlantic Economic “Boom”: The Global Powerhouse

The Transatlantic Economic "Boom": The Global Powerhouse

Neritan Mullaj, Executive Director AmCham Albania

The 21st edition of the Transatlantic Economy Report 2024 unveils a remarkable and exhilarating outcome. With a staggering $8.7 trillion in value, the transatlantic economy has proven extraordinarily resilient amidst global economic and strategic divisions, solidifying its status as the world’s largest and wealthiest market. It represents half of the total global personal consumption and nearly one-third of the global GDP in terms of purchasing power.

Trade in goods between the USA and Europe soared to unprecedented heights, reaching $1.22 trillion in 2023 – doubling the trade between the USA and China, which stood at $575 billion, and surpassing EU-China trade by 16%, which was $798 billion.

Europe has emerged as the primary market for LNG exports to the USA, accounting for over 60% of exports in 2023, while simultaneously serving as the largest supplier of oil to the EU. US oil shipments to Europe surged by 82% following Russia’s invasion of Ukraine, while Russia’s share of oil and oil product imports to Europe plummeted to below 4% in 2023.

The USA and Europe stand as each other’s primary source and destination for foreign direct investment. The stock of US investments in the EU, totaling $2.7 trillion in 2022, was a remarkable 21 times larger than the stock of US FDI in China, which amounted to $126.1 billion. Meanwhile, the EU’s stock of investments in the US reached $2.4 trillion in 2022, marking a 4% increase from 2021.A comprehensive study conducted across 30 European countries and 50 US states by Daniel Hamilton and Joseph Quinlan at the Foreign Policy Institute, delivers a resounding economic and political message. The economic integration between the USA and Europe is unparalleled elsewhere in the world, making them the most critical geo-economic markets for each other and a formidable alliance in facing geopolitical challenges.

These figures serve as a testament to a success story, with the American Chambers of Commerce in Europe (ACE) playing a pivotal role in strengthening these bonds. We take pride in being part of this network and contributing modestly to building sustainable business links that connect our small market with the two largest and most influential economies globally.

I encourage you to delve into the report for further insights into this economic collaboration.