A record reading has been recorded by HSBC’s Trade Confidence Index – the highest since the first forecast in 2009.
63% of exporters expect trade volume to rise over the next six months, according to the latest HSBC Trade Forecast.
This figure is up 2% from the second half of 2013, with an estimated increase of 5% per year over the next two years.
The report said that this growth was likely influenced by economic recovery in Europe and North America, as well as opportunities in faster-growing markets.
However, the forecast also predicted that the UK’s high-tech export sector would be out-competed by developing countries over the next 15 years.
Mark Emmerson, head of global trade and receivables finances for HSBC, said:
“Companies within developed economies that own the intellectual property of high value goods still enjoy a strong competitive advantage, but under-investment in R&D could threaten the advantage the UK enjoys, presenting an opportunity for emerging markets to gain ground.”
Asia is forecast to be the fastest growing destination for UK exports in coming years, with growth averaging 7% a year up until 2030 – China accounts for one third of this total.
Lord Livingston, Trade and Investment Minister, said:
“We are working hard to boost our export performance, but there is still more to do. That’s why increasing support for small and medium-sized companies is a vital part of the Government’s long-term economic plan to create jobs and reduce the deficit.”
Photo by El Scrapeo