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HSBC report calls for innovation, diversity in trade

Published by Brad Fougere on March 24, 2014

Economic forecasts and reports continue to point to Canada’s need to innovate, invest in R&D and diversify trade, particularly into Asian markets. The latest HSBC Global Connections Trade Forecast Report, which states that developed markets, including Canada, must innovate to remain competitive and make high-tech research investments to competitiveness in the strengthening global market.

“The example of high-tech presents lessons for other sectors and the future pattern of global trade,” said Ben Arber, head of global trade and receivables finance at HSBC Bank Canada. “The developed economies in which the intellectual property resides still enjoy the lion’s share of the spoils, but under-investment in R&D could threaten their competitive advantage.”

The report also highlighted the strengthening US economy and emerging markets as keys to Canada’s growth. While the US is widely seen as the most promising trade partner, by 2030 China’s share of trade is expected to rise above 30 per cent, the report said.  China’s expenditures on R&D have doubled to 1.8 per cent of GDP, adding significant value to their exports and signaling to industrialized nations that increased innovation is vital.
 
HSBC’s Trade Confidence Index, established in 2010, has risen to 115, its highest level yet. The global index, tabulated through a survey of firms expecting an increase in trade volume, has averaged 111 in Canada and was buoyed by more than half of the manufacturing sector’s expectations of higher volumes.
 
“These gains will be even greater if Canada can embed itself in global supply chains to take advantage of the high-tech sectors in emerging markets,” the report concluded

The report is available at https://globalconnections.hsbc.com/canada/en/tools-data/trade-forecasts/ca

Found in: HSBC Global Connections

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