Digital innovation could be a true game changer in the world of trade, delivering new capabilities that could not only facilitate optimised, efficient processes and more frictionless trade, but that could also subsequently help to significantly boost trade activity and economic growth.
November 22, 2018 | Dominic Broom, Joon Kim
- Despite rising trends towards protectionism, the outlook for global trade is positive, with Asia Pacific firmly established as a trade anchor
- Digitalisation has the power to transform global trade, and trade finance is increasingly becoming a data-led, data management business
- Collaboration can help banks to deliver trade enhancements, and enable trade opportunities for businesses across the region to be grasped
As seen with recent stock market gyrations, protectionism and anti-globalisation sentiments are continuing to fuel great uncertainty for trade and the global economy. Yet in spite of this, global trade remains robust, with predictions that it is close to reclaiming its status as an invaluable engine of economic growth. 2017 saw global trade growth reach 4.3% – the fastest rate in six years, as reported by the World Bank – while Boston Consulting Group expects trade flows to hit a record $24 trillion by 2026.
A number of factors are contributing to this growth, with increasing south-south trade and the rapid progression of emerging economies – particularly in the Asia Pacific region – playing a prominent role. Astonishingly, over two-thirds of major commodities are now produced, traded and consumed in Asia, and the region is set to account for approximately 60% of global trade growth up to 2020, according to International Enterprise Singapore reports.
If trade in the region is to reach its full potential however – and help to drive global trade as a whole – banks, together with the wider trade community, must ensure that businesses are equipped with the tools they need to maximise trading opportunities.
Transformational tools for trade
Digital innovation could be a true game changer in the world of trade, delivering new capabilities that could not only facilitate optimised, efficient processes and more frictionless trade, but that could also subsequently...
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Keywords: Global Trade