EBA chief warns of very high risks in the financial system

admin

Analyst: “Here is a golden opportunity for Swedish suppliers”

Published: March 21, 2023, 1:03 p.mAndré Lundvall, country risk analyst at EKN, the Export Credit Board points out several promising markets in Latin America – including Peru. Countries in the so-called Pacific Alliance play a key role in the ongoing green transition. There are also good opportunities for Swedish export companies to take a step forward.So you can get help with bank financing of your international investment André Lundvall, land risk analyst at EKN, the Export Credit Board, thinks so. He points out several promising markets in Latin America and the industries that have a lot to gain. How do you think Swedish exports to Latin America will develop in the coming years? – Right now, the global economy is what it is. We have seen a year-long slowdown in growth and it is affecting all regions worldwide. Despite that, there is potential for Latin America to develop strongly in the coming years and become an exciting partner for Swedish exports. What is the reason? – The Latin American economies are very much dependent on raw material prices. Now it can be expected that raw material prices will remain high for a couple of years to come, and that is positive. The markets here can also be boosted by the trend towards increased regionalization, in that they can now attract companies from the US that previously had production in, for example, China. Which markets might be interesting if you want to start exporting to Latin America? Brazil accounts for one-third of Swedish exports to Latin America, but I think you can start from the so-called Pacific Alliance, which consists of Mexico, Peru, Colombia and Chile. Like Sweden, they are smaller economies in a global world. They are therefore trade-promoting and relatively open economies. Is there a bubble with high potential among the markets in the region? – Ecuador is the market in the region that has grown the most for EKN in percentage terms in recent years. Swedish companies export, among other things, cardboard and paper to their food industry, which becomes packaging for bananas, flowers, seafood and so on. Ecuador actually has a weak macroeconomic framework and a business environment with potential for improvement, but the businesses that EKN supports work very well. It is probably connected to the fact that the customers of the Swedish companies export the products to the rest of the world and are therefore independent of the weaker domestic market. For which Swedish industries can Latin America be particularly interesting? – Companies in the mining industry and their subcontractors have a lot to gain here. Namely, Latin America has very large reserves of key raw materials linked to the ongoing green transition – Chile and Peru, for example, sit on 60 percent of the earth’s copper reserves. This is a golden opportunity for Swedish suppliers to the mining sector who have expertise in sustainable mining technology. They can help drive the transition in ways that are sustainable both for the climate and for those affected by the mining operations on site. In recent years, we have seen plenty of fluctuating exchange rates. Could it affect Swedish exports to Latin America? – Yes, at least indirectly. The dollar has strengthened considerably since the beginning of 2020 and the Brazilian real, for example, has weakened by 30 percent against it. Since foreign business is regularly done in dollars or euros – and much is done in installments – the development has been very costly for local importers. Going forward, I believe that more and more buyers will request financing in local currency to avoid a similar situation. It is something that EKN can help exporters offer, which can make it even more attractive to choose Swedish suppliers.Finance the next step on your growth journey with EKN’s guarantees

Facts: EKN

EKN, the Export Credit Board, has the government’s mandate to promote Swedish exports and the internationalization of Swedish companies. This is done by insuring payments and sharing risks with the exporting company, its subcontractors and banks. The operation is financed with the premiums of the policyholders. At EKN, there are also country risk analysts who, among other things, follow and evaluate the macroeconomic development in markets around the world where Swedish export companies are active. The article is produced by Brand Studio in collaboration with EKN and not an article by Dagens industri

Click to rate this post!
[Total: 0 Average: 0]
Next Post

Why a high hash rate does not guarantee high returns: ViaBTC has the answer for you!

In the world of cryptocurrency mining, hash rate is a crucial factor that determines a miner’s ability to solve complex algorithmic problems, as well as the probability of finding the correct answer and earning block rewards. In an industry dominated by mining pools, the hash rate directly reflects the daily […]

Subscribe US Now