WadeTradeNews

Welcome to Wade Trade News import-export news for December 2008. As this year comes to a close we’ll bring you the latest forecasts for the world economy, news you can use on China, Romania and Poland .... plus some handy international trading sites that can help you find opportunities and trade successfully throughout the credit crunch.

China Injects US$570 Billion, To Boost Domestic Demand
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China announced recently that it will loosen credit conditions, cut taxes and embark on a massive infrastructure spending programme in an effort to offset the global credit crunch by boosting domestic demand. A stimulus package estimated at 4 trillion Yuan (about US$570 billion) will be invested over the next two years to finance programmes in ten key areas – such as low-income housing, rural infrastructure, water, electricity, transportation, the environment, technological innovation and rebuilding from several natural disasters, most notably the May earthquake.

Although Chinese economic growth has been in double figures for many years this has mainly been as a result of fixed asset investment and booming exports. With global recession a possibility, China hopes to fill the gap – and possibly create additional opportunities for foreign exporters – by increasing domestic consumption.

World Economy To Decline Further, But Prospects For US Better ?
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The world economy will decline further over the next few months, according to a forecast released by the Austrian Institute for Economic Research (WIFO) at www.wifo.ac.at recently. The report said that the global rate of growth will only reach 3% this year, and fall even further in 2009.

However, the report suggests that the United States may enjoy better prospects than western European countries. The report forecasts that the average growth rate of the US economy for the whole of 2008 may be as low as 1.5%, but says that there are signs of an upturn in the property market and financial markets there. However, it warns that European countries like Britain, Ireland and Spain are facing a more serious economic situation due to a severe property market crisis. There, growth will only be 1.2% for the whole of 2008 – although the newer EU countries may still see 4.9% growth.

Romania Announces €10 Billion Economic Growth Package
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Romanian Prime Minister Calin Popescu-Taricean recently announced a programme to increase economic growth and boost employment to help the country through the global financial crisis.

He said that in the next four years the Government will invest at least €10 billion (around US$12.5 billion) in the economic areas that are crucial to Romania’s future. The programme includes the reduction of taxes, reduction of social security contributions, tax exemption for the reinvestment of dividends and a housing investment programme – including €220 million for social housing and a doubling of the funds allocated for building apartments. Tariceanu said he believes that Romania can overcome the economic and financial crisis being experienced internationally, adding that “any pessimistic prospect should be avoided.”

Bucharest Business Week Online is an easy way to keep up to date with news and opportunities in Romania – you can find it at www.bbw.ro. There some truly awful Romania trade directories on the Internet! We’d recommend the Romania Yellow Pages (Pagini Aurii) at www.yellowpages.ro as the best way to find local trade partners.

The Poland Chamber Business Information Service
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As a relatively new member of the EU, with a growing economy and low levels of debt, Poland is better placed to weather the economic crisis than many countries. If you’re interested in doing business there this site will help you: The Poland Chamber at www.chamberofcommerce.pl. The Poland Chamber is a private trade gateway to Poland rather than an official government source, but has masses of information for importers and exporters. There are over 7,000 pages of information on the site. You can get information on Polish products for export which you might not have known about, information on doing business with Poland, help with finding manufacturers, suppliers and buyers and much more. There are even free tutorials you can study. Well worth a look.

Top Tips : Dealing With Exchange Rate Fluctuations
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In these times of sharply fluctuating exchange rates it’s important to take extra care when dealing with foreign currency. Here are a few tips: It is essential to decide the currency to be used in the transaction in advance. An overseas trading partner will normally be much happier pricing in their own currency, but that could have significant implications for you. You will need to pay for that exchange, and money may be lost (or even made) if the exchange rate fluctuates between placing the order and paying for it—and fluctuations are common nowadays. The longer the time it takes to complete the order the greater the risk and the more the loss or gain could be.

One option worth considering could be buying the foreign currency in advance, and even hedging any risk by agreeing to a forward exchange contract. Specialist exchange services can advise you on this. For example, try Currencies Direct (www.currenciesdirect.com) or Currency Solutions (www.currencysolutions.co.uk).

Useful Site : Go4 World Business
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There are lots of trade portals around now, but here’s one which we think is worth looking at. Go4WorldBusiness.Com is an India-based global B2B portal for exporters and importers wanting to explore new markets and increase their international business in a simple, cost effective manner. It claims to feature 396,068 companies from 240 countries worldwide, 125,645 yearly trade leads, 153,425 products across 1,791 different product categories and has 125,315 registered buyers. The site is a subscription site, but you can get quite a lot of information including company details, products they trade in, and their contact details free of charge.

More Useful Links
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We hope you find these monthly trade tips and leads useful, but there’s lots more Wade World Trade can offer you. If you’re not already signed up to receive this bulletin automatically you can do so here: www.wadetrade.com/tradenewsreg.html. There’s no charge or obligation. To find out more about our latest courses take a look here: www.wadetrade.com/courses.html. For some useful FREE stuff visit here: www.wadetrade.com/free.html.