International trade set to drive UK economic growth

Tuesday 21st February 2012

UK businesses will see international trade growth accelerate from 2014 as the global economy ends a period of growth contraction, according to HSBC.

Its "Global Connections" trade forecast predicts that international businesses will recover more rapidly and earlier than previously expected and estimates that over the next 15 years, the UK is set to increase its international business activity by around 60%.

Despite the current economic climate the overall trend for international trade is positive, with growth acceleration coming sooner (in 2014) than previously forecast.

There are fundamental changes taking place in world trade, UK exports to China and to India grew by 21% and 37% respectively in 2011 and HSBC estimates that it processed around one third of these by value.

The Global Connections forecast identifies new "Corridor Creators" who are businesses searching out the best trade partners to drive competitive advantage, regardless of location, defining their own trade routes and corridors.

New emerging growth export partners for the UK include Vietnam and Brazil, while forecasts predict more imports from countries such as Qatar.

Alan Keir, HSBC Group Managing Director, Global Head of Commercial Banking, said: "The latest HSBC forecast shows a positive long-term outlook for UK businesses.

"Trading internationally will be critical for not only the British companies who want to remain competitive in the future, but it is also critical to the UK economy."

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Mike Jones