Stuart Nivison, Head of Trade and Supply Chain for HSBC Europe, thinks that over the next 12 months, the domestic business environment will remain challenging, ‘so it’s great to see optimism surrounding international trading activity’.

‘The IMF forecasts 0.9% GDP growth in the UK in 2010, and the outlook for the rest of Western Europe is similar. In contrast, the positive growth achieved by emerging markets during 2009 is set to continue next year, with the IMF predicting expansion rates of 6.4% in India and 9% in China. There has never been a better period for European companies to boost their overseas trading activity – or to start trading internationally if they do not already do so.’

Nivison also says that ‘this is not a time for looking inwards. This is a time for looking far and wide for new opportunities.’

‘Although the financial and economic crisis has rendered international trade more important than ever for European businesses, it is also increasing the risks associated with such activity. This means that companies need to pay closer attention to counter-party risks than they may have done in recent years. Companies also need to establish whether the price of any risk is currently factored into the cost of the goods they are buying or selling.’