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.
