The CEO of shipping giant Maersk claims that there are early signs of a recovery in world trade.
“Barring any negative surprises, we would hope for a slow pickup as we get into 2024, a pickup that will not be a boom like what we have known in the past few years, but certainly ... a demand that is a bit more in line with with what we see in terms of consumption, and not so much an inventory correction,” Vincent Clerc told CNBC this week.
According to Clerc, consumers in the United States and Europe have been a major contributor to this increase in demand, and those regions have continued to "surprise on the upside."
The shipping company foresaw dismal demand in 2022 due to a glut of unsold goods in warehouses, sagging consumer confidence, and crowded supply chains.
According to him, consumption would drive the forthcoming pickup rather than the "inventory correction" that predominated 2023.
Despite the challenging economic environment, emerging economies are proving resilient, according to Clerc, particularly in the cases of India, Latin America, and Africa.
Despite having faltered alongside many other major economies due to macroeconomic issues, such as Russia's full-scale invasion of Ukraine and tensions between China and the United States, North America is also projected to perform well during the coming year.
“As this starts to normalize and works itself out, we will see a rebound in demand,” Clerc said.
“I would say emerging markets and North America are certainly the points where we see the most upside potential,” he added.
But as IMF Managing Director Kristalina Georgieva noted in a recent interview with CNBC, the path to boosting global trade and growth isn't always easy.
“What we see today is very troubling,” Georgieva told CNBC on Sept. 10 on the sidelines of the Group of 20 nations leaders’ summit in New Delhi.
“There is fragmentation in our world. For the first time global trade grows slower than the global economy, 2% trade, 3% global growth. If we want trade to become, again, an engine of growth, then we have to create corridors and opportunities,” she said, referencing a planned rail-to-sea economic corridor linking India with Middle Eastern and European countries.
(Source:www.cnbc.com)
“Barring any negative surprises, we would hope for a slow pickup as we get into 2024, a pickup that will not be a boom like what we have known in the past few years, but certainly ... a demand that is a bit more in line with with what we see in terms of consumption, and not so much an inventory correction,” Vincent Clerc told CNBC this week.
According to Clerc, consumers in the United States and Europe have been a major contributor to this increase in demand, and those regions have continued to "surprise on the upside."
The shipping company foresaw dismal demand in 2022 due to a glut of unsold goods in warehouses, sagging consumer confidence, and crowded supply chains.
According to him, consumption would drive the forthcoming pickup rather than the "inventory correction" that predominated 2023.
Despite the challenging economic environment, emerging economies are proving resilient, according to Clerc, particularly in the cases of India, Latin America, and Africa.
Despite having faltered alongside many other major economies due to macroeconomic issues, such as Russia's full-scale invasion of Ukraine and tensions between China and the United States, North America is also projected to perform well during the coming year.
“As this starts to normalize and works itself out, we will see a rebound in demand,” Clerc said.
“I would say emerging markets and North America are certainly the points where we see the most upside potential,” he added.
But as IMF Managing Director Kristalina Georgieva noted in a recent interview with CNBC, the path to boosting global trade and growth isn't always easy.
“What we see today is very troubling,” Georgieva told CNBC on Sept. 10 on the sidelines of the Group of 20 nations leaders’ summit in New Delhi.
“There is fragmentation in our world. For the first time global trade grows slower than the global economy, 2% trade, 3% global growth. If we want trade to become, again, an engine of growth, then we have to create corridors and opportunities,” she said, referencing a planned rail-to-sea economic corridor linking India with Middle Eastern and European countries.
(Source:www.cnbc.com)
