Belt and Road Weekly Investor Intelligence #119
Tuesday, February 7, 2023
Compiled by Chris Devonshire-Ellis
China’s 2022 performance in funding BRI projects is better than many naysayers have stated and was up 64% in 2021. China and India are both expected to be the main global growth drivers during 2023. There is plenty of movement in the Middle East as its high-projected GDP growth sees it attract trade agreements, although a regional war could disrupt supply chains. Russia’s efforts at wooing Africa are also paying off, while the global digital banking system is poised for a surprising technology upgrade.
To obtain a complimentary subscription to these briefings please click here.
China’s investment in Belt and Road Initiative (BRI) countries rose last year to the highest level since 2019, with much of that increase due to a new battery plant for electric vehicles. Chinese investments into the 147 nations part of the BRI rose 63% to US$32.5 billion from 2021, according to a report from Fudan University Green Finance and Development Centre.
China and India will account for half of the global economic growth in 2023 versus just a tenth for the US and the EU combined, according to the International Monetary Fund (IMF) in its World Economic Outlook. The IMF stated China’s GDP growth was expected to reach 5.2% during the year, while India would achieve growth of 7%. Chinese and Indian consumerism will be attractive markets for businesses looking for higher returns than the West is currently able to deliver.
India’s trade and investment relationship with the Gulf Cooperation Council (GCC) member states – UAE, Saudi Arabia, Kuwait, Qatar, Oman, and Bahrain have seen increased investment inflow from India towards their development plans. The UAE and Saudi Arabia are increasing trade engagement with India and have emerged as India’s third and fourth-largest trading partners. This increasing economic synergy will facilitate fresh impetus to conclude a free trade agreement.
A CEPA is a type of free trade agreement (FTA) that is generally designed for a more holistic coverage beyond just commodities and can contain provisions for services, investments, dispute resolution, intellectual property rights, government procurement, and additional forms of specialized economic cooperation. The third round of talks is set to be held in Abu Dhabi next month.
Latest energy-rich economies to move to drop US dollar.
Asset-backed crypto, unsustainable debt ceilings, and the emergence of SWIFT alternatives are all en route as the emerging world flexes its financial, credit capability, and productivity muscles.
Serious implications for the INSTC and routes from the EU to Asia.
These agreements contain provisions in science, education, culture, energy, trade, customs, and transportation. All the nations involved are key members of the INSTC network, with Turkiye and Azerbaijan to the West coast of the Caspian Sea with links through to Europe, and Turkmenistan on the East with links through to Central Asia.
Political relations between Russia and Africa underwent a ‘reset’ after the 2019 Russia Africa Summit in Sochi, Russia. Russia has announced it could now set aside some resources to look further abroad – and at Africa in particular. Several underlying trends can be distinguished as likely to unite the efforts between Africa and Russia.
The move will see Sberbank take the global lead in blockchain finance.
About Us Dezan Shira & Associates provide business intelligence, market research, legal, tax and compliance issues for foreign investors throughout Asia, and have 28 offices across the region. We are members of the Leading Edge Alliance, a network of related firms with offices throughout the world. For assistance with Belt & Road Initiative research, please contact us at firstname.lastname@example.org or visit us at www.dezshira.com. To subscribe to our Belt & Road Initiative portal, please click here.
- Previous Article China 2022 Economic Growth – A Breakdown of Provincial GDP Statistics
- Next Article Prospettive 2023 per le aziende europee in Cina