ADBBRIEFSNO.256SEPTEMBER2023ISBN978-92-9270-311-0(print)ISBN978-92-9270-312-7(electronic)ISSN2071-7202(print)ISSN2218-2675(electronic)PublicationStockNo.BRF230334-2DOI:http://dx.doi.org/10.22617/BRF230334-22023TradeFinanceGaps,Growth,andJobsSurveyKEYPOINTS•Theglobaltradefinancegapreachedanestimated$2.5trillionin2022,or10%ofglobalmerchandisetrade.Thegapisupmateriallyfrom$1.7trillionin2020.•Companiesidentifiedaccesstofinancingasamajorchallengefortrade.•Digitalizationofglobaltradecanreducethegap,facilitatetransparency,andunderpinagreaterabilitytomonitorenvironmentalandsocialstandards,butisheldbackbyalackofharmonizedstandardsforelectronicdocumentsandrelatedlegislationrecognizingelectronictradedocuments.•Ofthebankssurveyed,80%viewsustainablefinancingasanopportunityandanticipateasurgeindemandforrelatedproductsandadvisoryservices.Progressonsustainabilityisimpededbyalackofharmonizedstandardsanddatacollection,alongwithreportingmechanismstodemonstratecompliance.Recommendations•IncreasetradefinancingcapacitythroughSME-targetedcreditprocesses,deep-tiersupplychainfinance,andtheattractionofpoolsofnewcapital.•Integratetradefinancingintocrisisresponseprograms.•Advancetheglobalagendaarounddigitalizationoftrade,focusingonstandardsharmonization,commercialadoption,legislation,andpolicy.•Harmonizesustainabilitystandardsandenhancerelateddatacollectionandreportingmechanisms.StevenBeckHeadofTradeandSupplyChainFinanceProgramAsianDevelopmentBankKijinKimSeniorEconomistEconomicResearchandDevelopmentImpactDepartmentAsianDevelopmentBankAnkitaPandeyConsultantTradeandSupplyChainFinanceProgramAsianDevelopmentBankMaraClaireTayagSeniorEconomicsOfficerEconomicResearchandDevelopmentImpactDepartmentAsianDevelopmentBankMa.ConcepcionLatojaConsultantEconomicResearchandDevelopmentImpactDepartmentAsianDevelopmentBankAlexanderR.MalaketSeniorSpecialProjectsAdvisorTradeandSupplyChainFinanceAsianDevelopmentBankINTRODUCTIONTradefinancingiscriticalforenablinginternationalcommerceanddrivinginternationald...
