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A Testing Time for the Transatlantic EconomyMonday, March 21, 2016
Brussels, 17 March 2016 – At its Transatlantic Conference, the American Chamber of Commerce to the European Union (AmCham EU) today released the findings of The Transatlantic Economy 2016 report, the annual survey of jobs, trade and investment between Europe and the United States. Europe and the U.S. have been out of sync in a number of policy areas which has raised questions about the durability of the relationship at a time of international instability.
‘While the transatlantic economy remains the largest and wealthiest of the global economy, Europe and the U.S. are taking different approaches to monetary policies, growth, employment and trade’ stated Joseph Quinlan, Senior Fellow, Center for Transatlantic Relations, Johns Hopkins University and author of the report. He went on to say, ‘Being so out of sync could create more uncertainty at a time when transatlantic cooperation and coordination is needed more than ever.’
On the positive side, growth in both the U.S. and the EU is expected to grow in 2016 –2% in the EU and 2.5% in the U.S. which will help narrow the growth gap. Real growth in Europe is beginning to accelerate because of changes in monetary policies, lower oil prices and a weaker euro relative to the U.S. dollar.
Together the U.S. and Europe accounted for 60% of inward foreign direct investment (FDI) and 70% of outward FDI. It is the U.S.-EU partnership that drives global trade, investment and capital flows. No commercial artery in the world is as large as the investment artery forged between these two regions. The report states that given that rising global markets are not yet capable of driving global in a sustainable manner, which underscores why the transatlantic partnership remains so important not only to the EU and U.S., but to the world.