The Channel Islands have an opportunity to play a key role in supporting a growing number of businesses that are concerned about protectionism but optimistic about their international prospects, according to HSBC's Head of Commercial Banking in the Channel Islands and Isle of Man, Warwick Long (pictured).
A new report from the bank, Navigator: Now, next and how for business, surveyed 6,000 firms globally and found that three in five (61 per cent) think governments are becoming more protective of their domestic economies.
This sentiment is strongest among companies in the Middle East and North Africa (70 per cent) and Asia-Pacific (68 per cent). In the US, 61 per cent believe protectionism is on the rise, while in Europe, half (50 per cent) are seeing a rise in protectionist tendencies.
The survey also found that firms are focused on growth, with 77 per cent of businesses optimistic about their international business prospects, and expect the volume of trade to increase over the next 12 months.
Emerging economies were found to be significantly more optimistic (69 per cent) than developed markets (53 per cent), while Asia-Pacific – where Guernsey and Jersey have developed links over the past decade – has the most positive outlook (82 per cent).
The reasons behind this include an increase in demand for their products from consumers and businesses (33 per cent), favourable economic conditions (31 per cent) and the greater use of technology (22 per cent) in driving growth.
Warwick Long commented: “Overall, companies are showing remarkable agility in navigating the changing trade policy landscape. An increase in protectionist sentiment hasn’t hampered the optimism of firms globally, but is causing concern about the cost of doing cross-border trade and international business.
“These findings should resonate with firms in the Channel Islands, given the ability we have here to work with internationally dynamic firms to provide them with the secure, safe and expert cross-border services they are clearly looking for to help them grow.
“There are particular opportunities for the islands to pick up their market share in the bullish Asia Pacific and the Middle East markets by supporting cross-border activity such as China’s Belt and Road Initiative.
"The emphasis the islands place on digital innovation will also be vital, with this survey showing technology as a key driver behind international growth.”
• HSBC's Navigator report combines an economic forecast of medium to long-term bilateral trade for exports/imports of goods and services across 25 markets and a global survey gauging business sentiment and expectations on trade activity and business growth. The full report can be accessed here