Europe is losing weight: its share in global GDP has fallen to 14% and may fall to 9% by 2050.
The Financial Times confirms an alarming trend: Europe (EU) already accounts for only 14% of global GDP by PPP, up from 25% in the 1990s. By the middle of the century, it will be only 9%, according to forecasts by PwC and the IMF. This is not an accident, but the result of systemic problems.
Why is this happening?
Demographic crisis: the birth rate is at the bottom, the labor force is declining — in Germany and Italy, GDP is already in the red in 2025. Low growth (0.5-1.4% per year versus 2% in the USA and 5-6% in Asia), lagging productivity, lack of investment (4.5% of GDP according to Draghi). Asia dominates: China — 19%, India is taking off.
What awaits the EU?
Geopolitical blow: the “Brussels effect” is weakening, the impact on global regulations is falling. It will be inferior to the United States and China in technology and innovation. Without reforms, there will be stagnation and dependence on imports.
