Digital Boom a Boost For Trade
The number of businesses exporting goods and services around the world could leap seven-fold if global commerce becomes fully digitalised, according to DMCC, the authority on trade, enterprise and commdoities.
This huge boost to global trade made possible by digital technology could finally start to reverse the decline in trade as a percentage of global GDP, which has been occurring for the last six years.
The Future of Trade report, produced after a year-long study by DMCC and CEBR, a leading economic consultancy, suggests that a “digital revolution” will be one of the most significant drivers of trade in the next two decades and could help trade recover to pre-crisis levels.
Emerging economies will also benefit from this expansion of global trade, as there is more of a level-playing field between them and developed markets when it comes to technologies such as mobile payments.
Figures from Mastercard and CEBR show that six of the top 15 nations ranked by mobile payment readiness are “emerging” countries, including Kenya, Saudia Arabia, China and Malaysia.
DMCC and CEBR predict that the equivalent of 30,000 new public companies around the world could become exporters by adopting digital strategies towards their suppliers and customers.
When looking at all companies around the world, the number of firms that could become exporters could be between 100 million and 350 million, the report states.
At present just one in five businesses export outside their home market, although that figure rises to a third in OECD countries and is just 15% in South Asia.