The world is moving towards the development of a global economy. The rise of emerging countries like China and India has opened up new markets for exports. These countries are now competing with each other to attract businesses from developed countries.
The expansion of Small and Medium Enterprises into Export Houses has contributed to the success stories of several developing economies of the world. While successful trade agreements with several nations have helped boost exports for the rising export countries; the skilled workforce, ability to establish customer base in foreign markets by the virtue of world-class product quality and the overall better understanding of how export business is conducted, thanks to the globalization, has helped these 5 developing economies leave an impressive mark on the international trade map.
In this blog, we will learn more about the top exports and export markets along with the potential markets that are estimated to propel the economic growth of these 5 fastest growing economies.
No nation has registered a faster export growth rate than India, the land of countless possibilities. India recently replaced the United Kingdom as the fifth largest economy in the world, a feat that has inspired hundreds of thousands of small businesses to come forward and take the giant leap forward into the international trade arena.
India’s top exports include mineral fuels, machinery, precious metals, organic chemicals, iron, steel and agro products. With the recent global shortage of edible oils, wheat and rice, India briefly took centerstage in global supply and made a genuine attempt to provide relief to the hungry planet still reeling from the effects of the geopolitical tensions that began in February this year.
The leading importers of Indian goods and commodities are United States (18.1%), United Arab Emirates (6.4%), Mainland China (5.8%), Bangladesh (3.6%), Hong Kong (2.9%), Singapore (2.7%), United Kingdom (2.6%), Netherlands (also 2.6%), Germany (2.4%), Nepal (2.3%), Belgium (also 2.3%) and Saudi Arabia (2.1%).
While 53.9% of the exports are imported by United States (18.1%), United Arab Emirates (6.4%), Mainland China (5.8%), from a continental perspective, 45.6% of India’s exports by value were delivered to fellow Asian countries, whereas 20.1% were sold to North American importers. India shipped another 19.2% worth of goods to Europe.
The opportunity for India lies with the European importers. With Ukraine’s temporary inability to provide wheat, rice and other cereals, India has a possible new market to claim a bigger chunk of exports. Netherlands, Germany and Belgium account for 7.3% imports from India whereas the possibilities look strong with France. Both nations are hopeful that a free trade agreement between India and the European Union will come into effect within the next 18 months.
Aside from the French interests in Indian exports, Italy, Poland and Hungary that depended on countries like Russia and Ukraine for food, mineral fuels, iron and steel will now look forward to supply from India.
The largest country in South America both from population and land area perspectives, Brazil is truly one of the most promising economies to watch out for this decade. Recording a 4.6% GDP growth, Brazil shipped an estimated $280.8 billion worth of goods around the globe in 2021.
Brazil’s top exports include ores, oil seeds, mineral fuels, iron and steel, meat, sugar, wood pulp and machinery. The country has also made efforts towards strengthening its manufacturing sector as well as developing its agricultural sector. With this expansion, Brazil will have an increased demand for various types of food products like beef, soybeans, and other grains that can be exported throughout Latin America and Europe.
The leading importers of Brazilian goods and commodities are Mainland China (31.3%), United States (11.2%), Argentina (4.2%), Netherlands (3.3%) and Chile (2.5%). Asia’s share of Brazilian exports was 51.9% of the total whereas Europe imported 16.1% of Brazil’s total exports in 2021. The remainder of the major chunk was equally divided between North and South America.
As mentioned above, the expansion of manufacturing and agricultural sectors will play a crucial role in Brazil’s exports. The increasing demand for edible oils and food grains has opened up several European markets for Brazil that were closed until recently because of the better provisions from Ukraine and Russia. While the future of these two countries hangs in the balance, newer supply chains are forming originating from Asia as well as Americas.
Export of Brazilian goods reached a new 25-year high when it clocked a total of € 9.05 billion in the first quarter of 2022. The significant increase in exports was due to accelerated growth in exports of coffee, tea, cocoa, spices, scrap metal minerals, wood pulp and waste paper. Brazilian footwear also found new buyers in Italy in addition to previously strong export markets in France and Germany.
Turkey has emerged as one of the fastest growing economies in recent years with increased exports and a 33% year-on-year growth rate totaling an impressive US$225 Billion. Turkey’s weaker local currency makes its exports paid for in stronger US dollars relatively less expensive for international buyers.
Turkey’s biggest exports were highlighted by vehicles, machinery, iron and steel, jewelry, knitwear and other clothing items, accounting for over 15% of the total exports in 2021. While Turkish rugs are world renowned for exceptional quality and variety, the nation made in-roads in accelerating exports of trucks as well.
Turkey finds its leading export markets in Germany (8.6%), United States (6.6%), United Kingdom (6.1%), Italy (5.1%) followed by Spain, Iraq, France and The Netherlands. Because of its proximity and ease of established supply chains, Turkey enjoys a massive export market in Europe, exporting up to 55.3% of its total exports to European nations. Shipments from Turkey find an expansive market in Asia as well with 24.7% of total export commodities sold in 2021.
As far as Turkey’s future in international trade is concerned, a looming deal with UAE to double the trade between two countries is bound to increase the export total. Talks of multilateral cooperation with Kazakhstan are also expected to increase Turkey’s exports to Kazakhstan. Both countries will also benefit from the Trans-Caspian international transport route that starts from Southeast Asia and China, runs through Kazakhstan, the Caspian sea, Azerbaijan, Georgia, and further to European countries. Additionally, with diplomatic relations warming up with Israel, a bilateral trade boom is expected that will strengthen Turkey’s standing as one of the fastest growing economies in the world.
4. South Korea
Recording an all-time-high export value of US$644.5 billion, South Korea has come a long way from 1964 when it enjoyed another landmark year in exports by crossing the US$100 million mark. The export growth of 25.8% year-on-year in 2021 was a significant jump considering the world was in the clutches of the pandemic.
South Korea leads the exports of semiconductors, electronic integrated circuits and mobile phones. Shipbuilding and automobile parts and accessories sectors also fetched South Korea a considerable foreign exchange. Iron & steel, plastics, medical instruments and organic chemicals were the other commodities that fetched multiple international markets.
Two-thirds of South Korea’s total exports ended up in the Asian markets, led by China (25.3%), Vietnam (8.8%), Hong Kong (5.8%), Japan (4.7%), Taiwan (3.7%), India (2.4%) & Singapore (2.2%). The United States is the other leading importer of South Korean goods with a global share of 14.9%.
A cursory view at South Korea’s trading partners clearly establishes the fact that it needs to find new markets in Europe and Americas. K-beauty products are gradually becoming popular not just in Asia but also in other parts of the world, thereby pushing South Korea’s cosmetics exports at $ 8.1 Billion and recording an impressive 21.3% y-o-y export growth from 2020. Expansion in plastics and agriculture industries is also expected to improve South Korea’s standing in the list of top global economies.
A relatively smaller nation with a total population of 17.5 Million, The Netherlands is emerging as one of the top exporters from Europe. The Netherlands shipped goods and commodities worth US$691.8 billion in 2021, which marked an astounding 25.5% y-o-y growth in exports from 2020.
Netherlands’ leading export items include computers, smartphones and other electronic devices, medical equipment, plastics, organic chemicals and iron & steel products. In fact electronics, machinery and equipment share of the total shipped goods is 18.2% of total dollar value earned in 2021. But the story doesn’t end here. India’s agreement with Netherlands for augmented exports in the next decade means that while the Netherlands will primarily import more products from India, it will also be able to circulate the same to the rest of Europe, working as a gateway for Indian goods and benefiting both economies.
The country’s current leading importers however are from Europe, a whopping 74.8% of the total exports. Germany (22.8%), Belgium (10.8%), France (8.1%), Italy (4.3%), Spain (3.14%) and Poland (3.12%) headline the list of importing nations from the continent whereas the United States took a major chunk from North American share with 4.8% worth of goods imported from Netherlands.
In addition to the leading import nations above, the recently finalized CETA agreement between Canada and EU nations including Netherlands scrapes the import tariff on goods, thereby boosting trade between the two markets.
Together with booming economies like Indonesia, Mexico, Thailand and Vietnam, these five countries are gradually but steadily changing the face of international trade.
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