This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Global Infrastructure Demand To Drive U.S. Trade Higher: HSBC Report

And despite a recent slowdown in emerging markets, most U.S. business leaders see Latin America (20 percent) as the most promising region for export trade growth in the near term, followed by China (13 percent) and Canada (six percent), the HSBC report shows.

“The U.S. has good access to a wide range of export markets because of its geographical position, openness to trade and competitiveness, especially in transport equipment and industrial machinery,” said Prabhat Vira, Regional Head of Global Trade and Receivables Finance in North America for HSBC. “Rising middle classes across Asia’s rapidly emerging markets will drive significant infrastructure demand in the region. And as China looks to scale the value chain in terms of the goods it manufactures, there is a strong opportunity for developed economies like the U.S. to supply sophisticated investment equipment to the country’s producers.”

Transport equipment helping power U.S. export growth to China

In fact, the HSBC Trade Forecast shows that U.S. transport exports to China are expected to rise by over 10 percent to the 2030s. Other export findings include:

  • U.S. exports to China will more than double over the next decades, from seven percent today to 18 percent in 2040;
  • Canada is and will remain the most important export market for the U.S. in the next two decades;
  • Average growth in U.S. exports will be close to six percent annually to 2030.

Need to renew or replace capital stock fueling U.S. import growth

Demand for infrastructure products in developed markets remains strong because economies like the U.S. must renew and replace existing capital stock to maintain their own competitive advantage in supplying investment goods to the rest of the world, the report shows. In fact, U.S. imports of transport equipment and information, communications and technology equipment are set to account for over half the growth in U.S. imports in the long term, the report finds. Other import findings include:

  • By 2020, India will overtake the U.S. to become the lead importer of goods for infrastructure, as it invests to build its domestic networks, and China will outpace the U.S. to become the top importer of investment equipment, as it invests to boost its manufacturing productivity.

For a copy of the U.S. Global Connections Report, please visit http://www.globalconnections.hsbc.com/. Additionally, for the first time, U.S. businesses can map trade flows and sector growth trends via a new, free HSBC Trade Forecast Tool available at https://globalconnections.hsbc.com/global/en/tools-data.

An infographic which portrays key findings from the latest trade forecast is also available upon request.

2 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs