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As economic growth decelerates, and the manufacturing sector struggles amid lower global trade, Western Europe expects to close the year with a 2.7% increase in insolvencies.
Insolvencies are rising, and structural weaknesses and the negative impact of sanctions on productivity and investment weigh on the economic expansion.
The economy is highly integrated into international value chains, making it vulnerable to major foreign trade losses, especially in the automotive sector.
As the economy is reliant on automotive-related exports to the Eurozone, especially to Germany, it is vulnerable to adverse developments in the industry.
The currency is subject to some volatility, and the country is vulnerable to capital outflows should there be adverse internal or external developments.
Political instability remains an issue for the long-term economic growth prospects, while corruption and red tape still hamper the business environment.