The 2023 report from the Berne Union highlights both growth and challenges for export credit agencies and commercial trade credit insurers:
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Significant Growth: There was a 6% increase in short-term trade credit insurance business to $2.8 trillion and a 40% rise in medium and long-term business to $165.4 billion, driven by strong performance in manufacturing and infrastructure sectors.
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Focus on Sustainability: Support for renewable energy projects doubled to a record $20.5 billion, reflecting a shift towards sustainable practices and the prioritization of green and climate-related transactions.
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Rising Claims: Claims reached a historic high of $8.9 billion, up 24% from 2022, driven mainly by MLT political claims linked to distressed sovereign debt, indicating increased risks from geopolitical tensions and economic uncertainties.
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Global Cooperation: The memorandum signed by ECA representatives from the Quad nations focuses on enhancing supply chain resilience and supporting climate-related initiatives in the Indo-Pacific, aiming to counterbalance China's influence in critical supply chains.
Overall, 2023 was marked by robust growth in the export credit and trade credit insurance sectors, but also by heightened claims and geopolitical risks, indicating a complex and challenging environment ahead.
Source: Bern Union , GTR