British businesses are confident that trading with BRICS economies will offer major opportunities as consumer spending in emerging economies is set to grow.
The fastest growing markets are expected to be Brazil, China and India, with exports from the UK expected to soar by 66% by 2026, according to a report from HSBC Bank.
The bank’s trade forecast suggests emerging markets will experience a tipping point in the balance of trade power, where imports will grow faster than exports within the next five years.
HSBC’s latest trade confidence index also reckons 93% of UK businesses are positive about the outlook for international trade volumes over the next six months.
Bank spokesman Steve Box said: “Taking advantage of overseas opportunities can offer businesses significant prospects for growth. We are seeing an increasing number of our customers looking to trade outside of the UK’s traditional trade partners in Europe, this is reflected in the emerging trade corridors highlighted in this report.
“UK trade is predicted to grow faster than previously suggested and certain sectors are likely to thrive with increased overseas demand, particularly from a skills and specialism perspective.”
The sectors tipped to benefit most from the BRIC upturn are those most linked with economic development.
Automotives, non-crude oil, medicines and printing are predicted to dominate world trade over the next 15 years.
- Brazil expects car imports to increase by at least 13% over the next five years, with exports up 4.9% by 2016
- Chinese car imports will go up by almost 12% by 2016
- Asian and Latin American medicine imports are expected to rise by 7% and Latin American imports of biopharmaceuticals by more than 11% by 2016
The UK’s fastest growing export sectors are biopharma, motor vehicle engines, petroleum gases and telecommunications equipment – all of which match demand from emerging markets
