As a consequence, the share of emerging economies within global GDP and trade will likely continue to expand.4 Given the importance of the EU, however, developments in Europe will continue to be a determining factor in the economic outlook of many countries.
Specifically, there is high business interdependence between the United States and Europe, as they hold the largest trade and investment bilateral relationship in the world. Furthermore, U.S. banks are highly exposed to European assets, and European banks have an important presence in the U.S. financial system.