One bane of CFOs is counter-party risk, the possibility that customers and suppliers will become insolvent. Trade credit insurer Atradius is easing worries with forecasts of a 3% decrease in business bankruptcies this year – except in the UK
A new study concludes that China’s on-going efforts to make consumption the key driver of growth and move away from investments and exports will help the country attain sustainable GDP growth – but will hurt trading partners in 2017 and 2018
Uncertainty is intensifying from the strong US dollar, higher interest rates in advanced markets and Donald Trump’s potential protectionist trade policies. India, Indonesia, Kenya, Côte d’Ivoire, Peru, Chile and Bulgaria look insulated from the volatility
Global insurer Atradius forecasts global GDP of only 2.4% this year, but emerging Asia will remain the fastest growing region, paced by India’s 7.6% expansion. Markets dependent on commodities and China will see a rise in insolvencies
Businesses in Asia-Pacific experienced a significant increase in the value of B2B receivables written off as uncollectable from 3.6% in 2011 to 5.0% in 2012. The Atradius report is based on feedback from 1,661 businesses in Australia, China, Hong Kong, India, Indonesia, Japan, Singap
Global growth is expected to pick up slightly, with a 2.8% growth, in 2013 comparing to this year, though the outlook has weakened over the past six months, following a sequence of downward revisions across both developed and emerging markets according to this Atradius report. Key Takeaways:
Atradius finds that payment default occurs with 2% of receivables in Eastern Europe and over 30% of B2B receivables are paid late. There are concerns over a likely deterioration of the trade credit risk outlook.