A research by Standard Chartered has projected global exports will almost double from $17.4 trillion to $29.7 trillion over the next decade.
The report also revealed 13 markets that will drive much of this growth, as Nigeria is expected to drive future trade growth by $112 billion at an average annual growth rate of 9.7 per cent by 2030.
The report, commissioned by Standard Chartered and prepared by PwC Singapore, is based on an analysis of historical trade data and projections until 2030, as well as insights from a survey of more than 500 C-suite and senior leaders in global companies.
The report stated that, “more than 80 per cent of business leaders are considering locating manufacturing in Asia, Africa or the Middle East in the next five to 10 years.”
It also noted that, “global trade will be reshaped by five key trends: the wider adoption of sustainable and fair-trade practices; a push for more inclusive participation; greater risk diversification; more digitisation and a rebalancing towards high-growth emerging markets.
“Almost 90 per cent of the corporate leaders surveyed agreed that these trends will shape the future of trade and will form part of their five to 10-year cross-border expansion strategies.”
The research revealed a significant trend towards the adoption of sustainable trade practices in response to climate concerns and a rising wave of conscious consumerism.
“However, while almost 90 per cent of corporate leaders acknowledged the need to implement these practices across their supply chains, only 34 per cent ranked it as a ‘top three’ priority for execution over the next five to 10 years,” it stated.
Standard Chartered, said, in line with its commitment to help make global trade more sustainable and drive the transition to Net Zero launched a Sustainable Trade Finance proposition to enable companies to build more sustainable and resilient supply chains.
Executive director, Corporate Commercial and Institutional Banking, Standard Chartered Nigeria, Korede Adenowo, said: “the predicted doubling of global trade offers strong evidence that globalisation is still working, despite recent dislocation. In addition to the growth of intra-regional trade pathways, the corridors of the future will still cut across continents.”