Monday, October 28, 2013

HSBC Global Connections Report 2013

For those looking to be optimistic about global trade volumes, a recent study by HSBC states that global trade stating that it would quadruple by 2030 is music to the ears. 

The report forecasts that infrastructure related trade in goods would rise in the coming years as major emerging economies invest in large infrastructure projects. It concludes:
"This analysis suggests that even as economies develop and become wealthier, their demand for infrastructure products remains strong – for both intermediate goods and for investment in equipment. There is no single model for the pattern of industrial capacity, infrastructure 
spending and wealth creation. While much of Asia has followed a traditional export-driven industrialisation pattern, India has still been able to achieve growth 
without the same focus on infrastructure, but 
infrastructure bottlenecks are now blamed for stalling 
growth. As the country becomes wealthier, it will 
increasingly build up its infrastructure. 

 At the same time, advanced economies like the USA, the UK and Germany will need to continue investing in infrastructure to maintain their competitive advantage in supplying investment goods to the rest of the world. 
We expect infrastructure-related goods to increase their 
share of rising global trade, providing opportunities for 
both exporters and importers of both those goods and 
the merchandise that can be manufactured as a result.
Trade forecasts looking down due to protectionism?  Thought I heard that somewhere...

1 comment:

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