Latin America not only has vast territory, rich natural resources, sufficient consumption capacity, and market potential but also has successfully promoted regional economic integration over the years. Latin American investment and trade opportunities should not be underestimated.
Latin America and the Caribbean (LAC) will resume economic growth in 2022, after contracting by 6.7% in all countries due to the effects of the pandemic last year. The recession caused by the epidemic will take years to recover from, and those living in poverty will continue to be the most affected.
In recent years, Taiwanese businessmen have been working hard to expand into emerging markets, and have gradually begun to pay attention to the African market because of its huge market potential. However, the epidemic hit Africa's economic development hard, and there are still huge numbers of poverty-stricken people.
The NFT market is growing explosively. In January 2021 alone, the transaction volume of NFTs reached a high of 200 million US dollars, compared with 250 million US dollars for the whole year of 2020.
In the past, excessive consumption, wanton mining, indiscrete manufacturing, and careless abandonment of wastes, led to the rapid depletion of natural resources. Now, the pursuit of a circular economy, with the goal of zero waste through recycling of resources, is being implemented in an attempt to solve environmental problems.
In terms of 2019 data, India is the world's 10th largest machine tool producer and the world's 8th largest machine tool consumer. The Indian government has set a target for India’s manufacturing output value to account for 25% of GDP by 2025. Together with the prime minister’s active promotion of "Made in India", it will bring a huge boost to the demand for machine tools in India. The Indian machine tool market still has considerable development potential, and the Indian manufacturing market is rising rapidly.
With the spread of the US-China trade war, the development and business opportunities of Vietnam's industrial manufacturing have been accelerated. In recent years, Vietnam’s economic situation has performed well. In 2018, Vietnam’s average national income per capita reached US$2,590, an increase of US$200 from 2017 and 1.23 times that of 2015. The Vietnamese government is working hard to promote the development of the manufacturing market and set the goal of becoming an industrial power.
The United States, the European Union, and China are the world’s three largest economies, which together are estimated to account for 60.92% of the global economy in 2021.
The market has gradually shifted to a zero-touch economy, unmanned production, and unlimited applications in response to the challenges of the times and the epidemic.
The trade war and the epidemic have impacted the global economy. No country can stay aside. As the world's top three exporters of machine tools, Japan is also facing the dilemma of a simultaneous decline in export and domestic demand! Although the orders from China in June ended Japan’s 27 consecutive months of negative growth over the same period, the machine tool industry’s demand for face-to-face with customers and delivery of machine installations has stagnated because the restrictions on movement have not been lifted, and the original production plan in the case of delay or contraction, all localities remain cautious about investment. Facing the impact of the epidemic, Japan’s Ministry of Economy, Trade, and Industry have also offered relief measures for manufacturers, including rent, working capital, preferential loans, and trade insurance, to avoid large-scale corporate failures in the country, and encourage Japanese companies to increase capital investment. Maintain the momentum of economic growth.
As most of the world still struggles with the coronavirus pandemic, China is showing once again that a fast economic rebound is possible when the virus is brought firmly under control.
Italy has a solid industrial foundation and is the second-largest producer of machine tools market in Europe.
Central and Eastern European countries are emerging markets. Among them, Poland, which is located in the transportation hub of Western and Eastern Europe, has the most potential for the development of the manufacturing market.
The US-China trade war has hit the global market. Since the start of the trade war, the US has imposed tariffs on China in three waves, which has also brought out the benefits of transfer orders. Among them, Mexico has benefited the most. The proximity to the United States, tariff-free exports, and cheap labor are opportunities that companies have seen in Mexico in the past. But in the future, the US-Mexico-Canada trade treaty may weaken Mexico's cost advantage.
According to the International Economic Forecasting Agency, the global economic growth of this year (2020) is almost the same as the growth rate of 2019. However, the impact of the covid-19 may affect the economy of various countries in the short term and even impact the industrial supply chain. The current situation of the international economy and explain the possible influence factors of the recent development of the North American market, including the US-Canada-Mexico Agreement, the US-Japan Agreement, the US-China trade war, etc., and then the development of the supply chain changes explore the outlook for the North American market.
2020 is a year of global economic challenges. The United States has the worst epidemic in the world, ethnic conflicts, and political turmoil, but US stocks have soared. After the epidemic and ethnic conflicts, when and how will the US economy restart?
How to choose the rise of India's manufacturing industry and whether it can accelerate its growth will determine whether Taiwan's machine tool industry can find a new blue ocean in South Asia as expected.
From January to June 2020, Vietnam's industrial production index increased by 2.71% compared to the same period last year (2019).
The ASEAN countries' economy is growing stronger, and it is expected to leap into the world's fourth-largest economy in 2030. Taiwan has geographical advantages and is actively developing a south-facing economic island chain.
In 2019, the global machine tool is facing a severe test, and the market prosperity is not ideal.