The €8 trillion (.7 trillion) transatlantic economy is proving to be remarkably resilient in the face of geopolitical and economic challenges. A new report from the American Chamber of Commerce to the EU (AmCham EU) and the U.S. Chamber of Commerce shows that key indicators – trade, company income and energy flows – posted record-breaking results in 2023:

• US-EU goods trade hit a record of €868 billion (6 billion), 39% higher than US-China goods trade of €528 billion (5 billion) and 16% higher than EU-China goods trade of €732 billion (8 billion).
• US company affiliates in Europe earned an estimated €321 billion (0 billion); European affiliates in the US earned an estimated €174 billion (0 billion).
• The US 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.

However, transatlantic foreign direct investment flows declined last year. In the first nine months of 2023, US FDI flows to Europe decreased by nearly one-third, while European inflows to the US dropped nearly 30%. Drivers include the higher cost of capital, depressed merger and acquisition activity, uncertain economic prospects and policies to encourage investment at home.

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.