EU vs US

Economic weight, productivity, financial reach, and hard power — EU relative to the United States. Updated just now.

Economic Weight

Nominal GDP

Cleanest top-line measure of relative economic mass at market exchange rates — matters for finance, procurement, and sanctions capacity.

▼ -2.3% YoY

0.68×

Trend YoY growth is -2.3%, slowing by 10 bps/year over the last 63Y. Latest: -0.8%, 1.4 pp above trend, a 0.2σ deviation. The latest YoY reading is depressed by 5.0 pp due to an tough comparison base from 2023.

Level

YoY %

y = 3.9% 10 bps/yr · t

Deviation from trend

PPP GDP

Better measure of underlying real output capacity, especially for judging production potential and domestic resource depth.

▼ -0.6% YoY

0.95×

Trend YoY growth is -0.6%, accelerating by 1 bps/year over the last 33Y. Latest: -1.6%, 94 bps below trend, a 0.8σ deviation. The latest YoY reading is boosted by 1.6 pp due to an easy comparison base from 2023.

Level

YoY %

y = −1.0% + 1 bps/yr · t

Deviation from trend

Productivity & Innovation

R&D Intensity Gap

Best broad, cross-country measure of how much each bloc is reinvesting in future technological capability.

▼ -0.0% YoY

-1.2pp

Trend YoY growth is -0.0%, slowing by 0 bps/year over the last 26Y. Latest: +0.1%, 13 bps above trend, a 2.1σ deviation.

Level

Change (pp)

y = 0.0% 0 bps/yr · t

Deviation from trend

Financial & Monetary Reach

Equity Market Capitalization

Public equity market depth is one of the clearest measures of capacity to finance firms, reward innovation, and host global corporate champions.

▼ -13.0% YoY

0.08×

Trend YoY growth is -13.0%, slowing by 47 bps/year over the last 49Y. Latest: -60.5%, 47.5 pp below trend, a 2.7σ deviation.

Level

YoY %

y = 10.2% 47 bps/yr · t

Deviation from trend

Hard Power

Military Spending

Cleanest direct scale variable for hard power: how much each bloc actually spends on defense in current dollars.

▼ -0.7% YoY

0.37×

Trend YoY growth is -0.7%, slowing by 5 bps/year over the last 63Y. Latest: +10.7%, 11.4 pp above trend, a 1.4σ deviation. The latest YoY reading is depressed by 11.6 pp due to an tough comparison base from 2023.

Level

YoY %

y = 2.5% 5 bps/yr · t

Deviation from trend