Although the outlook on the global economy has tempered over the past six months, small to mid-sized U.S. businesses remain optimistic about global trade growth, according to new research.
“Considering some respondents’ concerns about the domestic economy, the positive sentiment among U.S. businesses about global trade prospects is encouraging and indicates that trade remains one of the key drivers of economic growth globally,” said Bill Nowicki, executive vice president at HSBC, which conducted the research. “The emerging markets, and in particular Latin America and China, will provide future trade opportunities for U.S. businesses. Echoing intra-regional trade trends globally, trade between the U.S. and Canada continues to increase,” Nowicki said.
U.S. companies are gaining enthusiasm for trade with Latin America, which the respondents listed as the most promising region for trade growth in the next six months, followed by Greater China and Canada.
Among the nations surveyed in the HSBC Index, Canada, China , Hong Kong, India and Mexico all included the U.S. among the top three most promising regions for trade growth in the next six months.
The trend for intra-regional trade between the U.S. and Canada continues to build. More than eight out of ten (86 percent) of U.S. businesses identified Canada as the nation with which they do the most trading. This is a significant increase since this time last year, only 65 percent of respondents identified Canada as their most frequent trade nation.
Nowicki said intra-regional trade and trade among emerging markets have become the lynchpin of global trade, establishing a new global trade paradigm.
“To leverage the many trade growth opportunities that abound today for U.S. businesses, they should seek out insight from companies with a global footprint and deep experience on both sides of trade transactions,” said Nowicki.