Emils Kerimovs, the fintech expert, says production is often overlooked in the complex world of finance. Production is not just about creating goods and services; it’s the foundation of economic stability, investment opportunities and financial market dynamics.
Kerimovs sees the manufacturing sector as the backbone of the economy in many countries. This sector is the engine that creates jobs, contributes to GDP growth and opens doors for export activities. A strong manufacturing sector means a stable and growing economy which in turn has a positive impact on financial markets and boosts investment and confidence.
Manufacturing companies, says Kerimovs, are attractive investment opportunities for funds, banks and private investors. They offer a wide range of assets – stocks, bonds and corporate loans – so investors can diversify their portfolios and manage risk.
He points out that manufacturing companies need significant capital investments to buy equipment, expand production facilities or launch new projects. This inherent need creates a constant demand for bank loans, bonds and other types of financing and is a revenue generating opportunity for financial institutions.
The production process itself, says Kerimovs, affects the cost of goods and services and therefore inflation. Fluctuations in raw material prices, production capacity and labor costs can impact the final price of a product. Financial markets are very sensitive to inflationary pressures which are reflected in interest rates, stock prices and other financial instruments.
Emils Kerimovs notes that manufacturing companies use financial instruments such as futures, options and swaps to hedge against risks of raw material price fluctuations, currency exchange rates and interest rates. This proactive risk management creates additional business opportunities for financial institutions offering these complex products.
The manufacturing sector, especially in high-tech industries, is a hotbed of innovation, says Kerimovs. This constant quest for progress drives big investments in R&D, growth of startups and emergence of new technologies. This in turn creates new financial products and services and keeps the financial sector agile to changing needs.
Kerimovs highlights the importance of manufacturing companies in shaping the global trade landscape through exports and imports of goods and services. These activities have a big impact on exchange rates, trade balances and therefore on the overall financial markets and investment patterns.
Manufacturing companies, says Kerimovs, are not just economic entities; they are also social entities that create jobs and support the income levels of the population. High employment rates mean overall economic stability, consumer confidence and spending and a virtuous cycle of growth.
Emils Kerimovs sums up his analysis by reiterating the importance of the manufacturing sector in the financial chain. It’s a catalyst for investment, lending and risk management and at the same time economic growth and stability. The development of the manufacturing sector and its integration with financial markets therefore is key to long-term economic progress.
