Stanchart: PH among 20 ‘rising stars’ of global trade
The Philippines is among the 20 “rising stars” of global trade even at this time when concerns about the US-China trade war tend to dominate the global trade narrative, British banking giant Standard Chartered said.
Stanchart unveiled its new Trade20 Index, which examined 66 economies across the globe and determined each market’s potential for trade growth by analyzing changes across 12 equally weighted metrics under three pillars: economic dynamism, trade readiness and export diversity.
The Philippines—a market that Standard Chartered predicts could join the so-called ‘7-percent Club,’ with a GDP (gross domestic product) growth rate of 7 percent or more over the next decade—ranked highly in the area of economic dynamism.
The research showed that Association of Southeast Asian Nation (Asean) economies had substantial trade growth potential. Aside from the Philippines, other Asean countries that made it to the list were Singapore, Malaysia, Vietnam, Indonesia and Thailand.
The research said these Asean economies performed particularly well in the trade readiness pillar—defined as a market’s foundation for future trade growth.
“Indonesia and Vietnam’s high trade readiness scores were driven by improvements in their infrastructure and ease of doing business scores. Thailand’s substantial growth in e-commerce contributed to its high ranking. The Philippines scores particularly well in economic dynamism, driven by strong export and GDP (gross domestic product) growth,” Stanchart said.
Together, these markets are termed the “Asean accelerators” in the Trade20 study.
“These Asean nations have remarkable success stories to share, with economic and political reforms over recent decades driving rapid economic growth and reducing poverty levels,” the research said.
“Export-oriented manufacturing, growing intra-Asean trade, strong domestic demand, close trading ties with China and healthy job markets are helping to propel these economies forward. While they all face the challenges of heightened global uncertainty, they are well placed to benefit if multinationals consider moving their supply chains due to trade tensions elsewhere,” it added.
Other Asian markets are seen progressing particularly well in terms of trade readiness, including existing trading giants China and India.
While currently there is a focus on US-China trade tensions, these Asian markets are benefiting from regional trade deals, physical and digital infrastructure investments, and increasing openness, the research said.
Other economies cited in the list were Ireland, Hong Kong, Switzerland, Ghana, Cote d’Ivoire, Chile, Netherlands, UK, Saudi Arabia, Sierra Leone, Mexico, Tanzania, Gambia, Peru, Spain and France.
