Atradius DSB has identified a number of markets that offer opportunities for Dutch exporters in its study 'Promising markets for 2022'. Uruguay, Ivory Coast, Israel, Qatar and Taiwan are promising markets that have recovered quickly from the pandemic, thanks to successful vaccination campaigns and a favourable political and institutional environment that facilitates business. Theo Smid and Dana Bodnar
More than two years after the start of the corona crisis, the global economy is likely to show positive growth again in 2022. Although the medium-term outlook is positive, the economic recovery is still hampered by a variety of uncertainties, such as supply chain disruptions, high energy and commodity prices and high inflation. The unwinding of support measures will also hamper the recovery in several countries. Nevertheless, the overall picture for 2022 is positive.
We identify Uruguay, Ivory Coast, Israel, Qatar and Taiwan as promising markets in 2022. These countries were selected based on three criteria: (1) economic performance (2) a stable political and institutional environment, and (3) the Covid-19 situation (infection rate and vaccination coverage). What these countries have in common is that their economic resilience, innovative strength and growing middle class create opportunities for Dutch exporters looking for new markets. These countries appear to be emerging strongly from the pandemic and are also known for their relatively favourable business climate and growth opportunities in various sectors.
Tlthough Latin America has been the hardest hit by the pandemic, Uruguay has successfully committed to rapid vaccination of its population. With an expected GDP growth rate of 3% by 2022, Uruguay's economy is back to pre-coronacrisis levels. Government measures such as reopening borders, eliminating VAT for tourists and loans to boost the tourism sector (it accounts for 17% of GDP) provide a strong foundation for economic growth in 2022. We expect demand for cars and consumer electronics in particular to increase, offering growth opportunities in these sectors. At the same time, the country is increasingly developing into a regional supplier of renewable energy, particularly wind power.
Côte d'Ivoire is one of the countries with the strongest expected GDP growth (6.9%) globally. The government is investing heavily in infrastructure and, in addition, Côte d'Ivoire is a major international player in the agricultural sector, providing opportunities for suppliers of agricultural machinery and innovative industrial agro-processing machinery. The country is also a leader in the region in renewable energy and the government is focusing on the transition to a digital economy, offering opportunities for IT companies.
Israel and Qatar: stable business environment and strong economic growth
In the Middle East, Israel is performing well. This is partly due to its successful immunisation campaign, which has put Israel on the leading edge and is behind economic growth that reached 6.5% last year and is likely to reach 5% by 2022. Israel's resilient economy is resilient to external shocks and offers many opportunities in high-tech products, especially in the aerospace industry. The transport sector is also very promising, especially the market for electric vehicles and the infrastructure required for this, such as charging points. For Qatar, the economic outlook is also favourable. Rising oil and gas prices are expected to result in 3.6% growth in 2022. Qatar is also the world's largest exporter of LNG and the government plans to invest heavily in renewable energy, such as solar power. Furthermore, the hosting of the World Cup in 2022 offers opportunities for the non-energy sector, such as tourism and hospitality.
In Asia, Taiwan is doing well. The country is also benefiting from a stable political environment and high GDP growth in 2022 (3%). The outlook for businesses is positive, supported by good infrastructure, advanced production capacity and strong innovation power, especially in the technology sector. Taiwan is a major producer of IT applications and a world leader in the production of semi-finished electronic products. With the global shortage of chips set to continue this year too, growth prospects in this sector are bright. Other promising sectors are high-tech services, partly due to the accelerated digitalisation of society. Atradius expects the e-commerce market in Taiwan to grow 9% annually until 2024. This offers opportunities for the transport sector and logistics services, among others.