Growing Trade Finance Deficit Poses Serious Threat To Global Economy

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Trade finance is an essential part of the global economy, allowing countries to import and export goods and services to one another.

However, in recent years, there has been a growing deficit in trade finance, particularly in emerging countries.

This deficit can have serious consequences for the global economy and must be addressed.

According to the International Chamber of Commerce (ICC), the global trade finance gap was estimated to be around $1.5 trillion in 2019.

This gap represents the difference between the demand for trade finance and the amount of finance that is actually available.

The deficit is particularly prevalent in emerging countries, where many small and medium-sized enterprises (SMEs) struggle to access the financing they need to grow and compete in the global market.

One country where the trade finance deficit is particularly severe is Brazil.

In 2019, the Brazilian government estimated that the country’s trade finance gap was around $100 billion.

This lack of access to finance has made it difficult for Brazilian companies to expand their operations and compete on the global stage.