European Commission President Ursula von der Leyen emphasized that Europe and the US are experiencing a similar process of losing economic weight in the global system. Europe's share of global GDP has declined from 25% in 1990 to 14% today, while the US has dropped from 22% to 14% over the same period. This reflects a substantial shift in the global economy rather than a regional downturn on one side of the Atlantic.
Von der Leyen identifies the rise of China as the primary reason for this shift. China's share of global GDP has increased from 4% in 1990 to 20% today—a remarkable fivefold increase. This tectonic shift in economic power explains the strategic realignments of the United States, which have clearly indicated a change in interests as China's position strengthens.
According to the European Commission president, the upheavals occur in the global economy not because the US revises its strategies but rather as a consequence of them. This is a symptom of a new geopolitical reality in which economic power is steadily moving eastward. Such an understanding highlights the need for Europe to adapt to this new balance of power and reassess its own economic and political strategies.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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