Stellar year for UK businesses… and there’s no sign of a slowdown
We reviewed the ICC’s ‘Rethinking Trade and Finance’ 2014 review and have summarised trade and finance trends for last year.
We also looked at trends from the International Trade Centre and The World Trade Organisation (WTO).
As expected, global exporting is on the rise:
- Global export volumes were estimated to be worth $18.5tn in 2012-13
- 3.1% year on year increase in global trade volumes
- China, Canada and Mexico were the 3 largest exporters to the USA
The UK was in the top 10 global exporters, coming just below France and Korea at position 7.
Trade and Export finance have been eventful in terms of the dynamics of the market changing considerably. It is forecasted to grow by 5% this year.
We noted 3 trends:
- Product Trends: traditional trade finance demands have decreased while Supply Chain and Receivables finance takes off, especially in Asia
- Non-bank sources of capital: As barriers to entry fall, new entrants have risen and regulations favour non-banks for some asset classes
- Digitalisation: The application of digital technology has allowed transactions to come online, along with many innovative digital solutions to export and shipment.
What are UK businesses importing?
The biggest UK import last year was fuels and oils ($88bn) followed closely by machinery ($78bn) and vehicles ($66bn).
View our infographic here: http://www.tradefinanceglobal.com/2014-trade-finance-review/