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|Atradius publishes European insight report|
|Monday, 26 September 2016|
Trade credit insurer Atradius has published an in-depth report into the key economies of central, eastern and south-eastern Europe.
Designed to advise organisations on the trading risks of doing business overseas, the country report analyses the economies, industries performance and political situation in the Czech Republic, Hungary, Poland, Russia, Slovakia and Turkey.
As a trade credit insurer, Atradius creates insights on trading risks based on intelligence gathered from millions of companies around the world – as well as protecting businesses from the risks of non-payment.
The full report is available at www.atradius.co.uk and provides valuable information for any business trading in these markets; key notes include:
Czech Republic: Consumer demand is expected to remain robust with growth driven by income increase, decreasing unemployment and favourable lending conditions. Export growth is set to continue, driven by demand and the improvement to the country’s international competiveness.
Hungary: With a large share of its foreign currency denominated, a weak forint hurts Hungarian households and businesses whose loans are denominated in foreign currencies. The country remains highly vulnerable to international investors’ sentiment and currency volatility.
Poland: Economic growth is above eurozone average – which is expected to continue in the coming two years, mainly driven by private consumption, investment and exports. In Central Europe, Poland’s economy looks most vulnerable to the financial and economic fallout from the UK’s Brexit. The UK is Poland’s second largest export destination, after Germany.
Russia: Consumer price inflation has increased to more than 15%, due to the ongoing sanctions Russia has imposed on EU imports. With the rouble depreciation, this has had a damaging impact on household consumption. The economic contraction from 2015 is expected to continue this year.
Slovakia: The external economic position of Slovakia is solid with exports and imports well balanced and both growing. The economy is heavily reliant on industrial exports, especially automotive related, and therefore remains vulnerable to European downturns.
Turkey: With a fast growing population of more than 75 million and rising prosperity, Turkey was becoming one of the most prominent emerging markets of the last decade. However, with increased political risks due to the turbulent domestic political situation, the new escalation of the conflict with the PKK, terrorist attacks and more strained relationships with the EU and the US, economic repercussions in the mid and long-term cannot be ruled out – such as a decrease in foreign investment and consumer spending.
Stuart Ramsden of Atradius, said: “Trading overseas presents many challenging risks, especially if you’re based thousands of miles away. It’s imperative that UK firms wanting to do business abroad stay alert to the latest changes in the political and economic landscapes as these can have a major impact on the entire trade relationship – whether demand for your product or service, the value of your order if you’re trading in another currency and most importantly whether there is any risk to the likelihood of you getting paid.”
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