Europe still a global force despite its many big challenges

WITH unsettling news coming out of Europe, from the refugee crisis and "Brexit" to terrorism, a casual observer from Asia might be tempted to think that Europe is mainly trouble. Or that Europe does not matter that much economically anymore.

Most of the problems however, stem from the fact that Europe is at the forefront of important worldwide political and economic trends - such as shifting demographics, migration, the information technology revolution, climate change and the need for sustainable resources. Europe, in many cases, is also leading the search for solutions.

But, to begin with, Europe is still an economic giant and a centre of innovation.

Europe remains the world's second largest economy. Until 2020, it will also grow in absolute terms by US$2.3 trillion. In the coming four years the European Union (EU) will add the same size to…