JPMorgan CEO states Europe is losing
(MENAFN) Jamie Dimon, CEO of JPMorgan Chase, has warned that Western Europe is falling behind in the global economic race against its key competitors, China and the United States. He highlighted a shortage of globally competitive companies in Europe and expressed concern over the region’s declining economic performance.
Since the EU imposed extensive sanctions on Russian energy following the Ukraine conflict in 2022, economic growth across the bloc has stalled. Germany, traditionally the economic leader of Europe, is now enduring its third consecutive year of recession. Moscow argues that these sanctions backfire by driving up energy costs and weakening the EU economy.
Speaking at an event in Dublin hosted by the Irish Foreign Ministry, Dimon cautioned European leaders that the continent is losing its competitive edge, pointing out that Europe’s GDP relative to the US has fallen from 90% to 65% over the past decade or so. He emphasized that while the US benefits from large, globally successful companies, Europe’s market is shrinking in influence.
Earlier this year, Dimon told the Financial Times that Europe must take stronger action to stay competitive, noting a drop in GDP per capita from about 70% to 50% of the US level—a trend he described as unsustainable.
Dimon’s remarks come as NATO members in Europe plan to increase defense spending dramatically to counter what they describe as a Russian threat. NATO countries have committed to boosting their military budgets to 5% of GDP within ten years, more than double the previous target of 2%. Moscow denies any threat to these countries and accuses Western officials of using fear to justify increased defense spending amid declining living standards.
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