China to Reinforce Role as World’s Largest Exporter
China is set to reinforce its role as the world’s largest exporter, more than doubling its lead by 2030 according to the latest
Global Connections
report issued by HSBC.
In a generally upbeat forecast for the world’s 25 key trading nations, the bank says that emerging from a period of stagnation triggered by the global financial crisis, world trade is set to resume its growth trajectory in 2016, with a more normalised 8% year-on-year (YoY) growth in trade over the period to 2030.
The report identifies India as the world’s fastest growing exporter. Currently the world’s 14th largest exporter, HSBC expects it to be the fifth largest by 2030.
Exporters and importers in cyclical sectors, such as transport equipment and metals, will be the first beneficiaries once the pace of growth in cross-border commerce recovers to 8% in 2016 from last year’s figure of 2.5%. Looking further out to 2030, the Forecast projects that global merchandise trade will more than triple “as astute companies capitalise on increasing productivity and consumer wealth in the emerging markets.”
Increasingly robust economic conditions in the US and the UK, along with a gradual rebound in the eurozone, will give many international businesses a platform on which to build during 2015. In the short term emerging markets growth looks more vulnerable – while still rapid in relative terms – reflecting a combination of structural challenges and political uncertainties in Eastern Europe and the Middle East.
By 2030, however, China is expected to increase its overseas shipments five-fold as it strengthens commercial ties to emerging Asia, the Middle East and North Africa. China currently exports 1.4 times more goods than Germany and the US by value, and will widen this gap to almost three times US exports, says HSBC.
“Businesses can’t afford to fixate on the risks posed by today’s geopolitical problems and uneven rates of growth at the expense of their future planning,” said Simon Cooper, chief executive (CEO) of HSBC Commercial Banking.
“Conditions have undoubtedly been tough for trade recently, but we are now turning a corner. The medium and long term prospects look significantly better for businesses that have prepared themselves for recovery in both developed and developing markets.”