Publications

Payment behaviour of many Turkish businesses has deteriorated since 2015, and key sectors continue to face problems in 2017 due to increased uncertainty.

The current economic rebalancing efforts do not yet really support consumer durables retailing, as the saving rate of Chinese consumers remains high.

Further sales growth in 2017 is uncertain as consumer confidence could be affected by the outcome of the presidential and parliamentary elections.

Competition is high in all segments and price pressure offsets sales volume growth, meaning that the already low profit margins will remain under pressure.

2017 is expected to be challenging as the weaker pound is putting upward pressure on prices and growing uncertainty could affect consumer spending.

The 2017 retail sales outlook remains positive, due to robust private consumption driven by an improved housing market, job growth and higher wages.

Sales are expected to grow further in 2017, but smaller businesses are struggling to cope with the fast growing market leaders and online retailers.

Given the positive economic outlook for 2017 with household consumption forecast to increase above 3% , robust consumer durables sales growth is expected.

In 2016 non-food retail sales increased 6.8%, benefitting from robust private consumption growth fuelled by low inflation and increasing employment.

Small- and medium-sized retailers generally operate on low margins and are impacted by multiple sourcing agreements, competition and price volatility.

Indonesia's retail sector remains one of the most promising in Asia due to the large population and growing middle class with higher purchasing power.

Weaker players have disappeared while other businesses chose to merge with other peers in order to survive, and the concentration process will continue.

Payments in the sector range from 60 to 90 days; however, they can extend to more than 120 days depending on the market power of individual retailers.

The risk of a downturn in the domestic real estate market could dampen higher growth prospects in the furniture and domestic appliances segments in 2017.

While the return to more market friendly policies has improved medium- and long-term growth prospects, the short-term outlook remains challenging.

While in 2017 a modest economic rebound after two years of contraction is expected, Brazilian business insolvencies will continue to increase by about 10%.

Growth has slowed down due to the end of the commodity boom and weaker doemstic demand, but the business environment remains one of the best in the region.

Since 2015 GDP growth has slowed due to decreased commodity prices, but the external economic position remains solid and the liquidity position sound.

Against a backdrop of heightened political uncertainty, the Dutch economy is holding firm. A centre-right coalition is the most likely outcome of the elections.

Atradius forecasts insolvencies across advanced markets to fall only 2% in 2017, the weakest performance since 2009.

Despite decreases the level of payment delays and insolvencies will remain high in 2017 as a full-scale rebound is not expected for the time being.

The recovery of the construction sector has finally gained some momentum, but competition remains fierce, and prices and profitability are still low.

Despite continued growth during the last ten years and a benign outlook the level of building activity seen in the 1990s has not been reached again.

The recovery of the Dutch construction sector continued in 2016, but there is still overcapacity in the market, and a consolidation has yet to take place.

Uncertainty in the British construction market is expected to increase in the coming years, especially as a ‘hard Brexit’ seems to be most probable.

Italian building cooperatives and smaller companies focused on domestic residential construction remain highly exposed to the risk of business failure.

Future US construction growth could get an additional boost if, as announced, the new US administration invests heavily in infrastructure improvements.

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.

Construction payment delays and insolvencies have decreased, mainly because financially weak players already left the market during the past downturn.

Value added construction growth is expected to grow by more than 2.5% in 2017, but due to fierce competition many smaller players have low margins.

After rising in 2016, non-payments are expected to increase further in the coming six months, while business closures are also increasing further.

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.

The on-going economic slowdown, overcapacities and high indebtedness of many businesses will lead to further increasing business insolvencies in 2017.

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.

Subdued economic growth despite massive stimulus measures remains an issue, while exports are helped by a yen depreciation against the USD in 2017.

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.

In 2017 the economic performance continues to be impacted by weaker demand from China and other Asian countries, but strong fundamentals remain.

Growing political uncertainty after the president´s impeachment, subdued private consumption, and lower exports to China weigh on economic growth.

Growing competition from mainland China in the electronics sector require productivity increases and a diversification of the economy in the long-term.

GDP is forecast to grow about 3% in 2017, but high household debt, inequality and low incomes will put downward pressure on consumption growth.

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.

The demand situation is benign, but food businesses continue to suffer from margin pressure due to high labour and energy costs and stiff competition.

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.

The current trend of merger and acquisition towards a subsequent consolidation in the US food market is expected to accelerate in the coming years.