PUBLISHED | FEBRUARY 23, 2012
COMMENTS | NONE
China outpaces US, boon for Australia
HSBC has predicted that China will take over the US as the world's leading trading nation by 2016. This news will be welcomed by Australian exporters who will be able to drive an increase in international business over the next five years. HSBC Global Connections expects Australia's trade growth to be up to 25 percent higher than average world trade growth. An increase of nearly seven percent in Australia's trade each year for the next five years will be driven by China's growth as the world's top trading nation, with Australia's infrastructure and agriculture contributing significantly to this large gain. While world trade is expected to grow by nearly four percent over the next five years, Asia's is expected to grow by nearly double that at six and a half percent. "These findings provide a good reason for optimism about Asia’s and Australia’s prospects in an otherwise challenging global environment. Businesses need to identify their opportunities now to ensure they are financially and strategically prepared for the expected acceleration in trade in coming years," said James Hogan, head of commercial banking for HSBC Bank Australia. Demand for infrastructure expertise will be a boon for Australian businesses architectural and structural engineering sectors, with exports in architecture plans expected to grow by 25 percent annually for the next five years. While this predicted growth is based on China's rising trade, Australia will also have growing trade with other trade partners in Asia, with the fastest growing including Indonesia, Thailand, Korea and India and coal, agriculture, oil and gold as the main export sectors. HSBC's Global Connections is a quarterly report spanning 37 countries and covering the top 10 sectors for exports and imports in each country.