A modest recovery is forecast in the non-residential segment due to stronger private demand and activity picking up in the infrastructure building sector.
Due to the deterioration in demand competition has increased, as builders operate on lower margins in order to obtain the remaining available business.
Private building projects are expected to decrease due to less benign economic conditions and an increased supply completed housing projects and offices.
The price of oil has stabilised, largely thanks to OPEC’s shift in policy. The market is expected to rebalance in 2018 driving up prices in the medium term.
India’s economic growth outlook for 2017 remains robust, but a rather weak banking sector and high foreign indebtedness of domestic firms remain concerns.
Despite an expected GDP growth rate of more than 5% in 2017 structural weaknesses remain, and firms are increasingly vulnerable to currency volatility.
A prudent fiscal policy has limited the consequences of low oil and gas prices, but the economy is vulnerable to a hard landing of the Chinese economy.
GDP growth is expected to remain at a level of about 6% in 2017, but growing political uncertainty could hamper business sentiment and foreign investment.
Growing competition from mainland China in the electronics sector require productivity increases and a diversification of the economy in the long-term.
High growth of more than 6% in 2017, but economic fundamentals still show some weaknesses and Vietnamese businesses suffer from limited access to capital.
Gas prices have bottomed out and Atradius expects them to increase over the period up to 2021. Demand will be more moderate, but fueled primarily by China.
While German food exports continue to increase, domestic market conditions have become increasingly difficult. Overcapacity is an issue in some segments.
Smaller food retailer and wholesalers margins remain under pressure and are expected to lose further market share, while customer behaviour is changing.
Exports are of major importance for the French food sector (especially for the beverages segment), positively contributing to the French trade balance.
Large food businesses are active globally and performing well, while smaller producers and wholesalers generally face tough competition and low margins.
The economic downturn of two main export markets - Brazil and Angola - has led to reduced exports and, to some extent, investment levels in the sector.
Economic growth is expected to pick up in 2017, but uncertainty about the new US administration (potential protectionist trade policies) casts a shadow.
The consequences of any US shift on its Mexico policy remain to be seen, but increased currency volatility has already an negative impact on the economy.
Steady, but uneven growth is expected to persist. Domestic demand is the main driver of expansion, but manufacturing and export performance remain subdued.
Nearly 24% of Australian suppliers surveyed consider maintaining adequate cash flow levels to be the greatest challenge to business profitability in 2016.
As a consequence of late payment by B2B customers, 45% of suppliers surveyed in India reported they had to take specific measures to correct cash flow.
Most of the suppliers surveyed in Japan (33%) reported that foreign late payment is most often a consequence of the complexity of the payment procedure.
Despite no variation in either domestic or foreign late payment rates, the average 46 days DSO recorded in Singapore is six days longer than last year.
China is a major economic and trading power. Trade successfully with China sets out ten simple-to-follow rules that can help make your trading relationships with China lasting and successful.
On 15 November 2016, Atradius Credit Insurance hosted a webinar that looked at the opportunities available for trade with China and how to safely transact your business.
Overcapacity remains the main challenge, as the rebalancing of the economy from investment and export-driven growth towards private consumption continues.
The Italian steel distributor segment has a large number of relatively small companies, which are still affected by weak demand and pressure on margins.