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1、NO.256SEPTEMBER2023Adbbriefs2023TradeFinanceGaps,Growth,andJobsSurveyTradefinancingiscritica1forenab1inginternationa1commerceanddrivinginternationa1coronavirusdisease(COVID-19)pandemic,withadequatefinancingforsma11andmediumsizedenterprise(SME)supp1iersinparticu1arbeinganimportantpartoftheresi1iencee
2、quation.Forthesereasons,itisimperativetounderstandthesizeanddirectiona1trendofunmetdemandfortradefinancingthetradefinancegapsothatwecanputpo1icyandcommercia1measuresinp1acetoincreasefinancingcapacitywhereitismostneeded.G1oba1goodstrade(exports)inva1uerebounded,withgrowthratesof26.6%in2023and11.5%in2
3、023,fo11owingthesignificantcontractionresu1tingfromtheCOVID-19pandemicinthe2previousyears.1Despitetheresurgencefo11owingthepandemicsimpact,theg1oba1tradeenvironmentremainscha11engingfortraders.Fo11owingaTheg1oba1tradegrowthratein2019was-2.7%whereasin2023itwas-7.2%.ADBKEYPOINTS Theg1oba1tradefinanceg
4、apreachedanestimated$2.5tri11ionin2023,or10%ofg1oba1merchandisetrade.Thegapisupmateria11yfrom$1.7tri11ionin2023. Companiesidentifiedaccesstofinancingasamajorcha11engefortrade.,Digita1izationofg1oba1tradecanreducethegap,faci1itatetransparency,andunderpinagreaterabi1itytomonitorenvironmenta1andsocia1s
5、tandards,bucishe1dbackbya1ackOfharmonizedstandardsfore1ectronicdocumentsandre1ated1egis1ationrecognizinge1ectronictradedocuments.,Ofthebankssurveyed,80%viewsustainab1efinancingasanOpportunityandanticipateasurgeindemandforre1atedproductsandadvisoryservices.Progressonsustainabi1ityisimpededbya1ackofha
6、rmonizedstandardsanddataco11ection,a1ongwithreportingmechanismstodemonstratecomp1iance.Recommendations,IncreasetradefinancingcapacitythroughSME-targetedcreditprocesses,deep-tiersupp1ychainfinance,andtheattractionofpoo1sofnewcapita1. Integratetradefinancingintocrisisresponseprograms.,Advancetheg1oba1
7、agendaarounddigita1izationoftrade,focusingonstandardsharmonization,commercia1adoption,1egis1ation,andpo1icy. Harmonizesustainabi1itystandardsandenhancere1ateddataco11ectionandreportingmechanisms.ISBN978-92-9270-31I-O(print)ISBN978-92-9270-312-7(e1ectronic)ISSN2071-7202(print)ISSN2218-2675(e1ectronic
8、)Pub1icationStockNo.BRF230334-2DOI:http:/dx.doi.org/10.22617BRF230334-2StevenBeckHeadofTradeandSupp1yChainFinanceProgramAsianDeve1opmentBankKijinKimSeniorEconomistEconomicResearchandDeve1opmentImpactDepartmentAsianDeve1opmentBankAnkitaPandeyConsu1tantTradeandSupp1yChainFinanceProgramAsianDeve1opment
9、BankINTRODUCTIONMaraC1aireTayagSeniorEconomicsOfficerEconomicResearchandDeve1opmentImpactDepartmentAsianDeve1opmentBankMa.Concepcion1atojaConsu1tantEconomicResearchandDeve1opmentImpactDepartmentAsianDeve1opmentBankA1exanderR.Ma1aketSeniorSpecia1ProjectsAdvisorTradeandSupp1yChainFinanceAsianDeve1opme
10、ntBankzero-growthrateduringthe1astquarterof2023,asofApri12023,g1oba1exportsinva1ues1owedyear-to-date,showingadec1ineofaround3%?Factorssuchasg1oba1economics1owdowns,risinginterestrates,protectionisttradepo1icies,coup1edwithmountinginf1ationarypressure,havea11contributedtothesedifficu1ties.Notab1y:-Fi
11、nancingcostsareincreasingsystemica11y,inc1udingformicro,sma11,andmedium-sizedenterprises(MSMEs).IncreasingfocusonSuscainabi1ityandenvironmenta1,socia1,andgovernance(ESG)presentstransformativeopportunitiesbuta1sorisksincreasingfinancingcosts,inpartthroughmorecomp1exduedi1igencecosts.Nowinitseighthedi
12、tion,3theAsianDeve1opmentBank(ADB)survey4exp1oresthefo11owingtopics:(i) thetradefinancegap,inc1udingtrendsand1atestdeve1opmentsin2023-2023;(ii) supp1ychainresi1ience;(iii) digica1izacionoftrade;(iv) ESG,sustainabi1ity,andsustainab1etradefinancing;(v) theimpactoftheRussianinvasionofUkraine;(vi) optio
13、nsforreducingthetradefinancegap;and(vii) po1icyimp1icationsforstakeho1dersandissuesconnectedtothetradefinancegap.THETRADEFINANCEGAPTheg1oba1tradefinancegapisestimatedat$2.5tri11ionin2023,markinganincreaseof47%($0.8tri11ion)from$1.7tri11ionin2023(FigureI).Thisincreaseincorporatesthewideningofthegapre
14、su1tingfromtheCOVID-19crisisandthere1atedincreaseinratesofrejectionoftradefinancingrequests.Ongoingsystemicissues1inkedtomacroeconomicfactors,geopo1itica1tensions,andtheRussianinvasionofUkrainea1socomp1icatematters.REJECTEDTRADEFINANCEApproximate1y20%ofbankssurveyedstatedthatsometradefinanceapp1icat
15、ions,meaningrequestsfromcompaniesforfinancia1supporttobacktheirimportorexportactivities,wererejected.Reasonsforrejectioninc1udedfactorssuchasperceptionsofhighcountryrisk,1ackofco11atera1,poor1ypresenteddocumentation,andissuesre1atedtoknow-your-customer(KYC)comp1iance(Figure2).Figure1:GIobaITradeFina
16、nceGap$tri11ion.%ofg1oba1ezportsSources:ADB.2023TradeFinanceGaps.Growth,andJobsSurveyBanks;andWor1dTradeOrganization.WTOData,https:/data.wto.org/(accessed19Ju1y2023).Internationa1MonetaryFund.DirectionofTradeStatistics,(accessed29August2023):andWor1dTradeOrganization.2023.Wor1dTradeStatistica1Review2023.Genev