Island well-placed to support trade trends

Tuesday 17 December 2019

Politicians may be reshaping global supply chains, but businesses are still confident they will find growth in new markets, according to a new HSBC report.

The Bank’s Head of Commercial Banking in the Channel Islands and Isle of Man, Warwick Long, believes the islands’ global reputations and digital strengths make them well-placed to support this growth.

The latest HSBC ‘Navigator: Now, next and how’ survey of over 9,100 companies in 35 countries and territories finds that 47% are more optimistic now than in 2018, with 79% expecting their sales to rise over the next 12 months. 

Four in five (81%) are positive in their outlook for cross-border commerce, up four percentage points on last year, even as 65% think governments are adopting increasingly protectionist trade policies. 

“Businesses are responding to changes in the political landscape, whether it’s new tariffs that disrupt supply chains or trade agreements that smooth a path to new markets," said Mr Long. "They are investing in digitisation and looking to seize market share as a means to protect and grow their business.

“These findings should resonate clearly with firms in Guernsey, Jersey and the Isle of Man, as jurisdictions that have robust global strategies as international finance centres with strong reputations in key markets in Asia, the Middle East and the US and that are positioned really well as gateways to Europe.

"In addition, they all have ambitious digital strategies at a jurisdictional level, and we are seeing huge amounts of innovation in terms of how firms in the islands are implementing technology to support global growth. If they can maintain and assert these strengths, then all this combined means that the islands should be positioned strongly to seize the opportunities this report highlights.”

Pictured top: HSBC's Head of Commercial Banking in the Channel Islands and Isle of Man, Warwick Long.