According to a recent report from the Elevate Global Trade Intelligence Unit, global trade finance has come under strain as a result of the COVID-19 fallout. The report cites economists from Euler Herme who are calling for a sharp decline in world GDP this year. Euler Hermes is one of the most prominent trade finance firms in the world, and their expectations are for the economic contraction to lead to “unprecedented trade losses and the worst global recession since World War II.” The Elevate report also cites a Financial Times story mentioning the increased risk of trade finance drying up as banks around the world look to de-risk their lending portfolios. The full report can be found on the Elevate Export Finance site.
In other trade finance news, California-based Taulia is joining forces with JP Morgan on a new trade finance solution to provide much-needed liquidity and supply chain support to businesses. JP Morgan clients will be able to onboard any size of suppliers across the world at a critical time. More information on the partnership can be found at PYMTS.com.