Analysis and Studies - Country Analysis

Europe Day: a look at EU’s economy

Today is Europe's Day, an occasion that celebrates the pace and unity among European nations and the process that led to the creation of the European Union. On this day, we would like to share with you some interesting facts about the EU’s economy!

The EU is an intergovernmental organization formed by 27 states of the European continent. Officially born in 1993 with the Maastricht Treaty, it is the result of a fifty-year long process towards political and economic integration that started at the end of WWII. The founding countries of the European Union are Italy, Belgium, the Netherlands, Germany, Luxembourg, and France, but over time, more and more countries, including those behind the former iron curtain, have been integrated.

But, how is the European Union economy doing? Let's have a look!

The European Union is a free-trade and free-movement area. Goods, services, and people are freed from every custom or visa limitation. Also, 19 out of 27 countries have adopted a common currency, the euro, to facilitate trade and economic exchange. It is one of the wealthiest areas in the world, with a GDP of approximately 14 trillion dollars in 2021. Imports were valued at $5.08 trillion in 2020, along with exports at a total of $4.89 trillion. The biggest economy in the European Union is Germany, which is the main importer and exporter.

The EU accounts for 15% of the world's trade and, along with China and the United States, is a global player. It is the world's greatest exporter of manufactured products and services, as well as the world's largest export market for over 80 nations. The EU's industry is very diverse and it touches many areas: metal products, petroleum, coal, cement, chemicals, pharmaceuticals, aerospace, rail transportation equipment, passenger and commercial vehicles, construction equipment, industrial equipment, shipbuilding, electrical power equipment, machine tools, automated manufacturing systems, electronics and telecommunications equipment, fishing, food and beverages, furniture, paper, textile products.

The COVID-19 epidemic has thrown the EU into its worst-ever recession and threatens to increase inequality. Growth is returning as a result of strong and innovative policies, including a shared instrument to finance national recovery plans called Next Generation EU. A total of €2.018 trillion has been budgeted to invest in recovery.

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