[EN-AIR] "DHL" : Asia Will Account for 40pc of Global Trade by 2028

THE chief executive of "DHL Global Forwarding", Hermann Ude, said that by 2028, three Asia-based trade areas will account for nearly 40 per cent of the world's trade volume, Logistics Week reported.

DHL's latest survey, released at the recent APEC CEO Summit in Singapore, showed that the three fast-growing areas of economic activity, Asia, Africa and Latin America, will soon have a much greater impact on the world's economy that they do today.

Mr Ude said the Asia economy, especially China, with India in No.2 spot, would continue to be the centre of world trade. China accounted for most trade volume by importing raw materials and exporting processed goods such as machines, textiles, telecommunications and office equipment.

In 1999, Asia took up 34 per cent of the global trade volume by achieving US$15.6 billion. In 2008, the figure surged to $339 billion, 46 per cent of the world's total.

DHL's survey pointed out that the emerging new economies and their impact on the world is the result of several developments.

First, globalisation has been responsible for an increasing percentage of world economic growth.

GDP of Asian countries outside of Japan now occupies a larger proportion in the global GDP, which grew from nine per cent in 1990 to 15 per cent in 2008, and is estimated to reach 20 per cent in 2015.

Second, product manufacturing outsourcing and global purchasing will continue to prevail in the next 10 years.

Third, as the population ages in developed countries, more work will be done and more consumers will be in Asia, Middle East, Africa and Latin America.

Fourth, Asia will emerge as the global intellectual economic centre as the number of graduates mounts proportionally and in absolute numbers.

In addition, Asian countries are expanding their investment on scientific research. This has prompted the transfer of jobs related to creativity and intellect from other places to Asia.

Fifth, Asia's rapidly growing economy, especially China's, has propelled the regional demand for natural resources.

China's practice of trading investment with mineral exploitation rights will boost trade between Asia and Africa.

Source : HKSG, 14.12.09.