Global businesses ‘overly optimistic’ of a sharp rebound in exports: Allianz Trade

AMID a rebound in global trade, more than eight in 10 companies (82 per cent) in China, Europe, and the US expect export-driven turnover to improve in 2024, particularly in consumer-related sectors such as retail, household equipment, and computers and telecommunications, according to a recent survey.

Nearly 40 per cent of respondents anticipate a significant increase of more than 5 per cent in business turnover this year, almost double the 22 per cent who expected the same in 2023, according to the latest Allianz Global Trade Survey, which polled over 3,000 companies for its third annual edition.

However, Allianz Trade’s senior economist for Asia-Pacific, Francoise Huang, reckoned these businesses may be overly optimistic as they grow accustomed to protracted risks such as supply chain disruptions and geopolitical challenges.