Export 2023 report: the future is now

In a world still grappling with various shocks and widespread uncertainty, Italian companies must know how to navigate international markets. Here are the data that emerged from the Export 2023 Report

According to the ISTAT forecast, the macroeconomic outlook for the rest of 2023 is generally positive, albeit threatened by unfavorable financial conditions and a still high inflation rate. World GDP will continue to grow (+1.7% and +2.5% in 2023 and 2024), albeit at a slower pace than last year, while for world international trade in volume, there will be substantial stagnation in goods (-0.3% and +3.5% respectively), compared with more buoyant dynamics in services (+5.8% and +12.2%).

Last year, due to the health emergency and the outbreak of the Russian-Ukrainian conflict, governments had to make restrictive interventions in international trade: the consequences led businesses around the world to Rethinking destinations for one's exports and to new geographical areas for the supply of raw materials. But even in this context the Made in Italy export, historically one of the drivers for the Peninsula's economy, shows great resilience. Indeed, Italian exports of goods in the rest of 2023 will grow by 6.8% compared with last year, with great dynamism albeit at a lower growth rate than in 2022, exceeding 660 billion. And the pace will remain strong even in 2024, with a rate of +4.6%, then slowing to about 3.8% in the following two years.

Where to export to in 2023?

L’latest SACE report on exports clearly indicates how the development of the Belpaese country once again passes through international trade, emphasizing the opportunities offered by the fastest-growing markets and geographies that show great interest in Italian products. Among them, here are the destinations that represent the best possibilities for development For Made in Italy.

United States

The world's largest consumer market with a GDP of more than 21 billion euros and 333 million people, the United States will see a decent growth performance over the medium term thanks to the boost of the Inflation Reduction Act passed by President Biden's administration. Italian companies will be able to benefit from these reforms, either by investing directly there or through supply contracts along the entire value chain. Factors that will be able to give important impetus to Italian exports, such as An increased demand for electrical appliances (+8.7% compared to 2021) and rubber and plastic products (+10,7%).

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India

India remains among the fastest-growing markets for our goods exports thanks to the deep economic and fiscal reforms put in place by the Modi government in recent years to transform the country's productive fabric. After the excellent performance of Italian sales in 2022 (+24.2%), India is confirmed as one of the Peninsula's most attractive export destinations. Especially for goods exports, growing by 10.3% in 2023 and 4.8% in 2024.

In detail, the fastest growing markets for our exports include. the electrical appliance industry (+11.4% compared to 2021) and that of the instrumental mechanics (+11.2%). India thus seems poised to take up the challenge to establish itself as a new global manufacturing hub, taking advantage of the demographic factor (the population has surpassed China's and is expected to continue to expand over the next three decades) and the current context of adjustment in global value chains, which is driving several multinationals to diversify more production, especially on the Asian continent.

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Gulf countries

In Saudi Arabia Italian exports in the chemical sector recorded a record in terms of growth, with a +58% for 2023; also noteworthy is the performance of the’metal industry (+23% this year compared to 2022). Capital goods can also play a key role in the kingdom's economic diversification, especially in the field of mechanics instrumental (+6.2% in 2023 and +8.3% in 2024) and of the appliances electrical (+11% and +3.9% respectively).

Even the United Arab Emirates continue their growth process, as do Italian exports to the country, particularly for the’mechanical industry (+10% in 2023 and +6.7% in 2024) and for the electrical appliances (+9.3% and 9.8%). Finally, positive potential also for transportation equipment (+6.4% in 2023 and +10.1% the following year).

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Conclusions

These numbers show how Italian companies must believe in the possibility of increasing their turnovers exploring new markets: most companies that invest on exports in 2023 will get favorable returns. If you are eager to expand your company abroad but don't know where to start, countries such as the United States, India, Saudi Arabia, and the United Arab Emirates offer important development opportunities for Italian companies abroad. Want to learn more about how Octagona can help you explore these markets? Then contact us by clicking on the button below: we will study with you the best solution for your business.