In the world of finance, production is often ignored. But Emils Kerimovs, a fintech expert, thinks production is not just about making goods and services; it’s the foundation of economic stability, investment opportunities, and financial market dynamics. He sees the manufacturing sector as the backbone of the economy in many countries, driving growth and prosperity.
The manufacturing sector is the driver of economic stability. It provides jobs, generates income, and contributes to the overall GDP of a country. When the manufacturing sector is booming it creates a ripple effect across the economy, more consumer spending, business investments, and job creation. And that means economic growth and stability.
Investment opportunities are linked to the production sector. Kerimovs says investors look for opportunities in growing industries. The manufacturing sector with its room for innovation and technological advancements offers investment opportunities.
Investors can invest in stocks, bonds, or venture capital funds of manufacturing companies. By investing in the production sector individuals and institutions can earn profits and contribute to the overall growth of the economy.
Financial market dynamics are driven by the production sector.
Kerimovs says the performance of manufacturing companies can impact stock markets, commodity prices, and exchange rates. When manufacturing companies are doing well their stocks perform better, attracting investors and pushing up stock market indices.
As production grows the demand for raw materials and commodities increases and prices go up in commodity markets. Exchange rates also get affected as production drives exports and imports and demand and supply of currencies.
Kerimovs says policymakers and financial institutions must recognize the importance of the production sector. By supporting and promoting the manufacturing industry governments can create an environment for growth and development.
This can be done through various measures such as tax incentives, infrastructure development, and research and development. Financial institutions can also play a role by providing funding and financial services to manufacturing companies.
In recent years fintech has further transformed the production sector. Kerimovs says fintech solutions such as blockchain and digital payment systems can streamline production processes, and supply chain management and improve efficiency.
These technological advancements can lead to cost savings, increased productivity, and better customer experience.
Fintech also enables small and medium-sized enterprises (SMEs) in the manufacturing sector to access financing and expand their operations, level the playing field, and create competition.
The COVID-19 pandemic has shown the importance of a robust and diversified production sector. Kerimovs says countries that are heavily dependent on imports for essential goods and medical supplies faced big challenges during the pandemic.
The disruption in the global supply chain and scarcity of critical resources exposed the weaknesses of such economies. As a result, there is a renewed focus on domestic production and the need to be self-sufficient in key industries.
Governments and businesses are now investing in technologies, skills development, and infrastructure to strengthen the production sector and reduce dependence on external sources.
In summary, Emils Kerimovs, says production is key in the world of finance. The manufacturing sector is the backbone of the economy, drives stability, offers investment opportunities, and impacts financial market dynamics.
Policymakers, financial institutions, and businesses must recognize the importance of supporting and promoting the production sector for growth, resilience, and prosperity. With fintech, the production sector will see more advancements and innovations that will shape the future of finance and manufacturing.