World trade is recovering – and more cross-border trade of goods and services could boost incomes. In this economic update video for eZonomics, ING head of research into international trade Raoul Leering explains why.
Economies in recovery
The financial crisis and its aftermath saw exports slowing. In the last couple of years, trade barely kept up with the growth of GDP worldwide. But things are changing as national economies continue to recover, as ING research shows.
“In the 15 years running up to the crisis, world trade grew more than twice as fast as world GDP. This was the heyday of globalisation,” Leering says.
Europe still doing well
The European Union remains a dominant player in global trade, according to Leering. Offshoring will also continue to drive trade, ahead of reshoring. And the emerging economies that benefit most from the offshoring trend are seeing their purchasing power grow.
Meanwhile, the World Trade Organisation “Bali Package” signed in 2013 slashed red tape, streamlining customs procedures.
Future looks bright
Leering says some have claimed that globalisation is dead – but they’re wrong. “Actually, for the near future, we expect the growth of world trade will return, to outpace the growth of world GDP,” he says.