While the share of the US economy in the world’s gross domestic product (GDP) has grown steadily in recent years and reached 26 %in 2024, the European Union (EU) share has fallen below 18 %. Slovakia has experienced rapid growth and modernization thanks to EU membership, but strong industrial orientation and dependence on the European market makes it vulnerable to global and regional crises. The XTB financial markets analyst Marek Nemky informed about it.
“We have more expensive electricity prices, triple gas prices, and we also have more expensive oil. And that is actually the reason, or one of the main reasons why even the economic development is slightly lagging behind,” stated Germany.
“We have more expensive gas almost since 2011 constant and, of course, with the energy crisis that came in 2022, so it was even more enhanced when we paid sometimes up to nine times what they paid in the United States,” approached the analyst.
The reason for the United States is also a fragmented and inefficient regulatory environment. The EU is According to an expert It focuses mainly on consumer protection, which is advantageous from the perspective of the population, but such preventive legislative measures are significantly hampered by the business sector, which creates added value.
Among other things, the United States is more significant in research and development, making them technologically progressing. Innovation increases productivity, which is subsequently reflected in GDP growth, the analyst explained. The US should spend 3.5 % of GDP in research and development, the EU holding at 2.25 % of GDP and Slovakia lags with 1 % of GDP for research and development.
“In the field of technology, we are lagging behind the United States. Of the fifty largest technology companies, there are only five European, while thirty -three American. In the top ten we will not even find one European company, ” alerted the chief analyst of XTB Pavel Peterka. “If Europe wants to keep up with the US, it has to simplify regulations, strengthen capital markets, invest more in innovation and ensure more affordable energy,” closed.
