In spite of recent challenges to growth, Asian trade has remained resilient (with ASEAN exports, for example, growing 12% from 2013 to 2016 to reach US$875 billion). Yet, where world trade once grew at twice the rate of GDP, the WTO’s forecast for world trade growth in 2016 was a rate of just 1.7% – slower than global GDP for the first time in 15 years. If the huge opportunities in Asia are going to be realized, the wider trade finance industry must work to combat slow global growth by addressing the challenges holding back trade.
Writing for CFO Innovation, Dominic Broom, Global Head of Trade Business Development at BNY Mellon, examines what could be regarded as some of the most critical these challenges: increased Western protectionism; China’s economic slowdown; and, crucially, the widening gap of trade-finance availability. Broom opines how, through proactive collaboration and the pursuit of higher transaction visibility through technological advancements, the wider industry can reclaim the narrative surrounding global trade and, crucially, seize the huge opportunities promised in Asia.
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