TE2022 Report LR
March 22, 2022
The Transatlantic Economy 2022 study offers the most up-to-date facts and figures about the economic relationship between Europe and the United States.
This year’s study features new insights into how the war in Ukraine affects the transatlantic relationship, the impact of the COVID-19 pandemic, prospects for the ongoing economic recovery, global supply chain issues, changing American and European economic relations with China, and the transatlantic energy economy.
The study includes dedicated profiles for 30+ European countries and all US states. Research for the study was conducted independently by Daniel Hamilton and Joseph Quinlan at the Foreign Policy Institute at Johns Hopkins University's School of Advanced International Studies, and the Transatlantic Leadership Network.
Appendix A: European Commerce and the 50 U.S. States (pages outlining the economic impact of investment and trade with Europe for each state plus Washington, DC)
Appendix B: U.S. Commerce and Europe - A Country-by-Country Comparison (pages outlining the economic impact of investment and trade with the United States for 31 countries across Europe)
In a global economy wracked by surprises and shocks, the U.S. and Europe remain each other's most important markets and geo-economic base. The transatlantic economy generates $6 trillion in total commercial sales a year and employs up to 16 million workers in mutually "onshored" jobs on both sides of the Atlantic. It is the largest and wealthiest market in the world, accounting for half of total global personal consumption and close to one-third of world GDP in terms of purchasing power.
Ties are particular thick in foreign direct investment (FDI), portfolio investment, banking claims, trade and affiliate sales in goods and services, digital links, energy, mutual R&D investment, patent cooperation, technology flows, and sales of knowledge-intensive services.
Despite the Covid-19 pandemic, inflationary challenges, congested supply chains, and war in Ukraine, the two sides of the North Atlantic are poised for solid economic growth in 2022. According to estimates for 2021, last year was record-breaking on many fronts:
- Transatlantic trade in goods reached an all-time high of $1.1 trillion in 2021.
- U.S. foreign direct investment (FDI) flows to Europe surged to an all-time high of $253 billion;
- U.S. foreign affiliate income earned in Europe reached an estimated $300 billion, a record high;
- European affiliates in the United States earned a record-breaking $162 billion;
- European FDI flows into the United States surged to the highest levels since 2017, hitting an estimated $235 billion.
- 16 millionThe number of jobs supported by transatlantic trade and investment
- $1.1 trillion2021 saw record-breaking numbers in two-way transatlantic trade in goods