RESULTS
From a trade finance perspective, 2022 was a year of two halves. According to the Coalition Index for Transaction Banking covering the first six months of last year, trade finance revenues rose on the back of strong performances in structured trade finance. Within this segment, supply chain finance continued its growth trajectory as corporates sought more financing, while commodities trade finance delivered record results thanks to heightened market volatility.
However, UNCTAD’s December 2022 global trade update suggested that the slowdown that began in the second half of last year will worsen in 2023 as geopolitical tensions and tight financial conditions persist.
Fitch Ratings agrees that global trade lost momentum towards the end of 2022 and also believes it will remain subdued this year as high energy prices and monetary policy tightening hit energy-intensive and fixed investment sectors.
There was, however, much...
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