Global investments lagging behind in Europe

2023-12-12 07:52:18

In today’s global investment landscape, Europe finds itself in an unfavorable position. Trendeo’s balance sheet reveals an unbalanced distribution of industrial investments on a global scale. Of the 1.3 trillion euros invested worldwide, Asia captures 54% of this sum, while America absorbs 28%, relegating Europe to only 10% of global investments.

Global investments dominated by Asia and America

This inventory of global investments reflects a changing global economy. In the United States, economic growth remains strong with GDP growth exceeding 5% in the third quarter, in contrast to Europe where Germany is experiencing a recession and France is experiencing stagnant growth.

This global investment report highlights the hesitation of European companies to invest, despite the critical needs for reindustrialization and ecological transition. Global investments have not returned to their pre-pandemic levels, with an average of 525 billion euros invested between the start of 2021 and mid-2023, lower than the 665 billion euros before the health crisis. Europe is lagging significantly behind. In global comparison, European investments are 40% below average.

Europe facing the disinterest of its own investors

The average investment in Europe is significantly lower than in other regions main areas of the globe, recalls David Cousquer of Trendeo. The investment strategies of European companies show a marked preference for investments outside the European Union. This trend has direct repercussions on the continent’s economy and its place in the global investment context.

The health and energy crises have led to an increase in inflation, forcing central banks to adopt more restrictive monetary policies. These measures have affected investment decisions in Europealready in decline in the context of global investments.

1702372066
#Global #investments #lagging #Europe

Leave a Replay