2021 Trade Finance Gaps, Growth, and Jobs Survey
Kim, Kijin; Latoja, Ma. Concepcion; Beck, Steven; Tayag, Mara Claire | January 0010
Abstract
In 2020, the coronavirus disease (COVID-19) pandemic devastated the global economy, causing global gross domestic product to shrink by 3.2% and global trade to contract by 7.5%. As governments around the world tried to contain the spread of the virus by imposing mobility restrictions, sharp declines in economic and trade activities jeopardized markets. Trade finance is vulnerable to economic crises despite being a low-risk asset class, and yet it is vital to support trade-led growth, which is critical to growing economies ravaged by the pandemic. In economies where trade finance gaps were already high prior to the pandemic, the panic and uncertainty induced by the rapid global spread of COVID-19 aggravated the trade finance access issue.
The 2021 Asian Development Bank (ADB) Trade Finance Gaps, Growth, and Jobs Survey aims to enhance our understanding of the size of the trade finance shortfall and the related pandemic impact. Now on its seventh cycle, the survey continues to find large market gaps for trade finance that impede the full potential of trade to deliver growth, jobs, and poverty reduction. Against the backdrop of the COVID-19 pandemic, the survey discusses the following:
• Trade finance market gaps in 2020;
• Impact of the pandemic on the supply and demand in trade finance markets;
• Prospects of post-COVID-19 recovery and major barriers to the path to recovery;
• Access to SME trade financing and support measures for SMEs during the pandemic;
• Use, role, and potential of fintech and digital solutions, and obstacles to their growth; and
• Policy implications including the role of digitalization in trade and trade finance and international cooperation in promoting trade finance.
Citation
Kim, Kijin; Latoja, Ma. Concepcion; Beck, Steven; Tayag, Mara Claire. 0010. 2021 Trade Finance Gaps, Growth, and Jobs Survey. © Asian Development Bank. http://hdl.handle.net/11540/14236. License: CC BY 3.0 IGO.PDF ISBN
978-92-9269-068-7
Print ISBN
978-92-9269-067-0
ISSN
2071-7202 (print)
2218-2675 (electronic)
Keywords
Risk Financing
Regional Development Finance
Public Finance
Infrastructure Financing
Financing of Infrastructure
Financial Security
Financial Intermediation
Finance And Trade
Enterprise Financing
Trade Regulation
Trade Finance
Regional Trade Agreements
General Agreement On Tariffs And Trade
Foreign and Domestic Financing
Cybersecurity
Taxation
Business Financing
Investment Requirements
Capital Needs
Tax Incentives
Project Risks
Tariff agreements
Customs conventions
Import policy
Export policy
International Monetary Relations
Local Finance
Banks
Capital Market
financial statistics
Foreign trade
Digital
Investments
Finance
Market
Markets
Use tax
Tax administration and procedure
Taxing power
Effect of taxation
Business enterprises
Foreign trade and employment
Mentoring in business
Trade routes
Bills of exchange
Swaps
International banks and banking
Capital movements
Central banks and banking
Bills of exchange
Swaps
Banks and banking
Stock exchanges
Market
Exchange
Balance of trade
Cyber Security
e-commerce
Insurance
Trade insurance
Regulation
Blockchain
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