Two Pitfalls for Businesses in 2019
INCREASED CREDIT RISKS FOR EUROPEAN COMPANIES
An increasing number of pitfalls, such as escalating political risk, the high volatility of commodity prices, and supply constraints, began to slow world growth in late 2018 and cast a shadow over the outlook for 2019 (3 % in 2019, after 3.2 % in 2018 and 2017). This time Western Europe, has weakened before the United States, contrary to previous reversals in economic trends. Coface expects the number of business insolvencies to increase in twenty European countries (out of 26 analyzed) – by +1.2 % in the eurozone and +6.5 % in Central Europe. This increased credit risk for businesses stems from a cyclical slowdown and persistent political uncertainties…
