Publications

Profit margins of British chemicals businesses could be negatively affected by domestic economic uncertainty over the outcome of the Brexit negotiations.

Despite a rebound agrichemicals remains susceptible to sudden changes of exogenous factors like climate, market prices and exchange rate fluctuations.

The Italian chemicals industry continues to benefit from a rebound in domestic demand, however fiscal crimes plague the fuel wholesalers segment.

The sector records solid growth rates, but caution is advised with smaller fuel wholesalers and stations due to a grey economy in fuel trade in the past.

The robust economic growth has led to rising demand for petrochemical products, while the rubber and plastics are benefitting from automotive demand.

Indonesian chemicals sector growth is driven by demand from the construction and automotive industries and an increasing population with rising incomes.

The industry remains affected by the slowdown in the country´s economic performance, which has led to lower investments and decreased public spending.

Chemicals production growth is expected to increase about 2.5% in 2017 and 2018 while payment delays and insolvencies will remain at very low level.

Market sentiment is a vulnerability for South Africa due to its current account deficit and the dependency on portfolio-investments for financing it.

ICT sales growth is slowing down, and in some segments requests to prolong payment terms and overdue payments have increased since the end of 2015.

Despite robust growth rates, pricing pressure and cheap imports are key challenges in the domestic ICT market, especially for smaller IT distributors.

ICT growth is expected to slow down in 2017 as increased economic uncertainty is affecting household consumption growth and business investments.

It still remains to be seen to what extent the Trump administration´s policies will impact the US market for information and communication technology.

Despite overall growth, many French ICT companies face structurally low margins, price pressure and an on-going consolidation process in the market.

Due to limited organic growth opportunities and the on-going economic uncertainty, market players strive to expand through acquisitions and specialisation.

Despite continued sales growth, most German ICT businesses operate on very tight margins due to fierce competition and price erosion in most subsectors.

On average, payments in the ICT sector take between 30 and 90 days. Business culture promotes prompt payment, and therefore the number of delays is low.

Payment behaviour in the South Korean ICT sector has been good over the past two years, and the number of payment delays and insolvencies is low.

As in 2016 the ICT market remains characterised by high competition, single-digit margins, low entry barriers and stagnating growth in some segments.

The first hint of spring is in the air leaving this Economic Outlook in a position of cautious optimism.