Stronger domestic consumption and intra-regional trade have emerged as two major drivers of economic growth in Asia. China’s large role in regional growth has led to increasing acceptance of the renminbi (RMB) in trade settlement, and it could one day become a regional currency, says HSBC.
“The outlook for Asian trade is positive. HSBC forecasts that trade in the region will grow at an average of 5.4% annually from now until 2016. Additionally, between now and 2026, trade in Asia will grow as much as 129%, outpacing global trade growth of 98%,” said Huynh Buu Quang, the bank’s head of global trade and receivables finance for Asia-Pacific.
Intra-regional trade currently accounts for 50% of all trade in Asia Pacific, which is also seeing its share rise rapidly with other emerging markets, Brazil in particular, he said.
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