The Transatlantic Economy 2024 presents the most up-to-date facts and figures about the economic relationship between Europe and the United States. The research was conducted independently by Daniel Hamilton and Joseph Quinlan at the Foreign Policy Institute, School of Advanced International Studies, Johns Hopkins University and the Transatlantic Leadership Network. 

The 21st edition of the report features new insights into the international support for Ukraine and sanctions against Russia, major shifts in the transatlantic energy economy, the reconfiguration of global supply chains with derisking strategies at play, relations with China as well as the green and digital transitions. 

The study also includes dedicated profiles for 30+ European countries and all US states.

The U.S. and Europe remain each other’s most important markets and geo-economic base. The $8.7 trillion transatlantic economy employs more than 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 particularly thick in foreign direct investment (FDI), portfolio investment, banking claims, trade and affiliate sales  n goods and services, digital links, energy, mutual R&D investment, patent cooperation, technology flows, and sales of knowledge-intensive services.

2023 was record-breaking on multiple fronts:

- Sales by European affiliates of U.S. companies reached a record high of $3.8 trillion; sales by U.S. affiliates of European firms hit a record high of $3.1 trillion.
- U.S.-Europe goods trade reached an all-time high of $1.22 trillion in 2023– double U.S.-China goods trade of $575 billion.
- U.S.-EU goods trade hit a record of $946 billion, 39% higher than U.SChina goods trade of $575 billion and 16% higher than EU-China goods trade of $798 billion.
- U.S. goods exports to Europe reached a record high of $498 billion.
- U.S. company affiliates in Europe earned an estimated $350 billion, a record high; European affiliates in the U.S. earned an estimated $190 billion, a record high.
- The U.S. became Europe’s most important supplier of liquefied natural gas (LNG) and of petroleum oil, accounting for 50% of EU LNG imports and 18% of EU petroleum oil imports.
- Europe became the top purchaser of U.S. crude oil and the U.S.’s most important LNG export market, accounting for more than 60% of U.S. LNG exports in 2023, double U.S. flows going to Asia.

Source: AmCham EU