Trade credit insurer Atradius has published an economic report on Asia, analysing the risks and opportunities of trading within the region.
The Atradius Country Report on Asia was prepared as an intelligence tool, designed to equip businesses with vital political and economic and insights as well as a performance outlook across individual industries. The report analyses the main Asian economies, including China, India, Japan, Indonesia and Vietnam and also features Malaysia, Singapore, South Korea, Taiwan, Thailand and the Philippines.
Within the report, Atradius reveals that business insolvencies in China are expected to increase further in 2019 due to the economic slowdown and the ongoing rebalancing of the economy away from manufacturing and towards services. From a sector perspective, highly indebted companies in industries with excess capacity are particularly vulnerable, these include, aluminium, cement, coal, construction steel/metals and commodity trading. Due to the ongoing uncertainty over the future direction of the US trade policy, Chinese businesses dependent on sales to the US are also at risk, especially in segments where US competitors are vocal in calling for an end to ‘unfair trade’, such as metal, electrical machinery/electronics, textiles and tyres.
Richard Reynolds of trade partner Atradius which protects businesses from the risk of trading domestically and overseas, said: “When it comes to trading in Asia, China and India are giant economies while Singapore is an advanced city state that punches above its economic weight. Indonesia, Thailand, Malaysia, the Philippines and Vietnam represent approximately $2.3tn with a combined population exceeding half a billion, many of whom are close to entering a more prosperous middle-class lifestyle. From this, it’s clear to see why Asia is an attractive market for overseas trade. However, any trade relationship should always be underpinned by solid research, including a comprehensive understanding of the market and analysis of any potential risks. At Atradius, our experts constantly monitor and assess global markets to provide real-time insights allowing us to support businesses to identify opportunities, warn of risks and ensure the relationship is developed upon strong foundations which is crucial to futureproof an export journey.”