Publications

Increasing insolvencies – but from a historically low level

Profit margins of many business increased in 2021, but several markets are facing major downside risks

Despite rising inflation in the eurozone, we argue it has not yet sprung loose from the ECB target in the medium term

Vietnam: despite some headwinds the economic performance remains strong, and provides business opportunities for exporters

Economic disruptions from the war in Ukraine, lingering lockdown restrictions and multi-decade high inflation have generated a new set of adverse shocks for the global economy

An economic rebound is underway and sectors have recovered, but downside risks persist

The impact of the alarming surge of inflation on businesses, and the consequent need to protect cash flow and profitability, lies at the heart of our latest survey in the USMCA.

The need for strong strategic credit risk management is a high priority in the Canadian market.

Over than 10% increase in the Mexico market in the levels of both B2B customer payment defaults and bad debts written off as uncollectible.

Days-Sales-Outstanding worsens (DSO) for one third of companies polled across all US industries. Payment default from B2B customers remains a major headache for companies.

The 2022 edition of the Atradius Payment Practices Barometer for Asia reveals a sharp rise in B2B bad debts written off as uncollectable. This represents a threat of liquidity strains for businesses.

Companies polled said they tackled the issue with more regular reviews of customer credit behavior to spot warning signs of financial distress.

Businesses polled in China fear that a knock-on effect of payment defaults from B2B customers will trigger liquidity issues.

A wide range of protective measures to mitigate against the impact of customer payment default were used by businesses polled in the United Arab Emirates.

Our survey shows a sharp rise in bad debts written off as uncollectable, revealing a disturbing deterioration in B2B payment practices.

An alarming increase in bad debt write-offs worries companies in Hong Kong, prompting them to seek strategic credit risk management solutions.

Companies polled in India told us of the difficulty they found in collecting long unpaid trade debt.

Debts written off as uncollectable showed an alarming 50% increase in the Singapore market compared to our past survey.

Companies polled in Vietnam said they needed measures to avoid being liquidity squeezed due to the impacts of customer payment default on the business.

ICT is expected to be among the fastest growing sectors in manufacturing, driven by accelerating digitalisation and industrial automation

Lower, but still solid ICT sales and production growth

Government aims to accelerate the digital transformation

Main issues are chip shortage and inflationary pressures

Ongoing domestic sales growth, but there are downside risks

Solid ICT growth expected during the coming years

Digital transformation is a major growth driver

Robust growth continues due to high demand for chips

Smaller ICT retailers face more problems in the coming months

Profit margins of ICT businesses should increase again in 2022

ICT Sales growth maintained by businesses and public bodies

Slowdown in demand, and higher input prices

Solid performance, but high input prices could become an issue

Energy Outlook based on the IEA's World Energy Outlook

The Covid-19 pandemic and the Russia-Ukraine war pose challenges to global value chains.

High levels of unpaid debt prompt stronger credit controls among Australian businesses as they battle it out for survival in a competitive market.

Ongoing, but lower sales growth in 2022

Rising insolvencies as fiscal support expired

Lockdowns and a slowdown in the property sector affect demand

Higher input costs and supply chain issues hit profit margins

A more difficult year ahead

More brick-and-mortar retailers will leave the market

More difficult market conditions after robust growth in 2021

More insolvencies expected in 2022

High inflation and lower consumer confidence weigh on sales

Profit margins should remain stable, but downside risks remain

Retailers´ profit margins sustained by fiscal support

Decreasing profit margins for brick-and-mortar retailers

Reviving Latin America's energy transition requires wind and solar

Russia's invasion of Ukraine throws sand in the wheels of the global economy.

As government support after the pandemic is phased out, insolvencies in most markets are projected to increase in 2022 and 2023.