UK businesses are trading their way to recovery as emerging economies are up by more than a quarter, according to a new report.
The latest report from HSBC Commercial Banking revealed that the UK currently accounts for 4% of world trade, with UK trade up 12% globally and 31% to emerging economies in the first four months of 2010. This growth has been fuelled by business trading with Sub-Saharan Africa (+64%), developing Asia (+34%) and Middle East and North Africa (+25%).
Key sectors leading the UK’s drive to trade include: pharmaceuticals, organic chemicals, petroleum oil and motor fuels. Much of the development in these areas is owed to the UK’s manufacturing sector that supplies both components and products to these industries across the world.
Head of HSBC CMB UK, Noel Quinn said: “We are working with the UK’s thinking businesses to help them recognise and exploit their own strengths internationally as we believe this is where both the UK economy, and our domestic businesses, have the greatest opportunity to prosper.
“This year, our export lending is up 40% year-on-year and we are helping a greater number of businesses begin to trade internationally.”
The report also found that companies which look beyond exporting products to exporting skills and knowledge are those that will get ahead. UK companies often form part of a global supply chain in knowledge-intensive processes and the study acknowledged that the UK has a real future in developing this expertise.
Quinn added: “Our own Trade Confidence Index out this week shows us that UK trade confidence remains high; with 92% of UK businesses surveyed during the second half of 2010 saying they expect trade volumes to stay the same or increase over the next six months, with 53% of businesses seeing the emerging markets as a promising region for trade.”