Growing trade volume between emerging markets reveals new opportunities for banks
Emerging economies are gradually becoming key drivers of global trade, while developments in the global banking sector will reflect the same dynamics in trade internationalisation. October 18, 2011 | Wong Wei HanAs the US and Europe continue to find their economies struggling against mounting recessional woes and a limping US dollar, a deterioration in domestic consumer spending across these regionswill become all the more apparent. This will in turn weaken imports into the affected markets. In contrast to the grim outlook in developed markets, key emerging economies are becoming the dominant force in driving global consumer consumption. Reflecting this reality is momentum in GDP growth of emerging markets, which has consistently remained above that of advanced economies since 2007. Meanwhile, Asian economies continue to outstrip developed countries in terms of trade, with China’s growth from 2011 to 2014 reaching $1,557 billion compared to $1,016 billion for the. In the same period, South Korea and India will achieve trade growths of $665 billion and $459 billion respectively, outperforming the UK, Russia and Germany. In a presentation discussing the changes and opportunities of international trade, Amita Jhangiani, HSBC’s head of global product management, trade and supply chain, pointed out that the new dynamics in global trade translates to a greater degree of trade internationalisation, whereby the developed world is being bypassed as the major venues of international trading and investment, while trade volume within the emerging and developing regions is making huge strides, and is projected to exceed $55 trillion by 2018. As a result of this tremendous growth, trade corridors linking key developing markets are set to expand at a rate of 13%-18% per annum, a stark contrast to the US-EU trade corridor, which is expected to see its steepest decline between 2010 and 2030. The immense potential for trade and consumption growth in emerging economiesis similarly reflected in the financial sector across the world, and top institutions are now eagerly repositioning themselves t... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: Asia Pacific, Emerging Markets, Hong Kong, India, South Korea, Transaction Bankingasia pac,Emerging markets,HK,India,south korea,Transaction Banking, Asia Pacific,Emerging Markets,Hong Kong,India,South Korea,Transaction Banking, Keywords:HSBC, Citigroup, GDP, US-EU Trade Corridor, Latin America HSBC, Citigroup, GDP, US-EU Trade Corridor, Latin America
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