September 11, 2023
3 min

Global trade finance gap at record $2.5 trillion : ADB - India Shipping News

The global trade finance gap reached a record $2.5 trillion last year, as economic risks hindered banks' financing capacity, according to the Asian Development Bank. The gap grew by 47% due to rising interest rates, flagging economic prospects, inflation, and geopolitical volatility. Approximately 80% of trade relies on financing. The report also highlighted constraints faced by banks due to Russia's invasion of Ukraine and suggested that ESG alignment could help reduce the trade financing gap. Insufficient financing was cited as the top supply chain challenge. Access to financing, reliable logistics, and digital technology were deemed crucial for resilient supply chains.

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Adhikansh Gupta
Content Manager

Writer and editor who covers the latest trends and innovations in the software-as-a-service (SaaS) industry