British businesses to tap into emerging markets
Companies in the UK look set to take advantage of business opportunities in many emerging markets, new forecasts suggest.
According to HSBC, British firms are increasingly tapping into locations such as Brazil, India and China.
This trend is apparent in many different industries, including the automotive sector and the biopharmaceutical and medicines market, as well as telephony.
HSBC believes companies in Britain will continue exploiting opportunities on offer in less established economies, which suggests international money transfer activity could increase over the next few years.
Steve Box, head of trade and receivables finance in Europe at HSBC, commented: "UK trade is predicted to grow faster than previously suggested and certain sectors are likely to thrive with increased overseas demand, particularly from a skills and specialism perspective.
"Taking advantage of overseas opportunities can offer businesses significant prospects for growth."
HSBC has predicted that by 2026, international business activity involving firms from the UK will be 66 per cent up on the current level.
Figures also showed that 93 per cent of British companies are optimistic about international trade volumes holding up over the next few years.
The financial services provider said the likely surge in global business activity represents good news for Britain's economy in the long term.
HSBC believes that export volumes to other countries will eventually overtake imports, due to emerging markets experiencing greater demand for various goods and services.
This comes after the UK government flagged up trading internationally as one way in which small to medium-sized enterprises (SMEs) can help to drive up the UK's gross domestic product. Indeed, business and enterprise minister Mark Prisk said giving companies the confidence to do business outside the UK is "vital" to boosting economic growth.
SME owners might therefore be keen to consider adopting an approach many may believe is the sole preserve of larger organisations.