Reports

The currency is subject to some volatility, and the country is vulnerable to capital outflows should there be adverse internal or external developments.

Political instability remains an issue for the long-term economic growth prospects, while corruption and red tape still hamper the business environment.

Despite a modest economic rebound the business performance and credit risk situation of several industries remains strained, especially in Dubai.

Beside deterioration of payment behaviour in the private sector, the number of payment delays in larger projects dependent on government funding is still high.

In 2019 and 2020 growth is expected to exceed 5%, supported by exchange rate liberalization, interest rate normalisation and increasing tourist arrivals.

The economy is currently forecast to expand by about 3.5% in 2020, however, this depends on decent performance in agriculture, tourism, and exports.

Slow reform progress and social tensions weigh on the medium-term outlook, while economic expansion remains heavily dependent on the security situation.

GDP growth is expected to recover only modestly as the oil fund is nearly depleted, and ongoing political uncertainty weighs on the economic performance.

Economic growth in Eastern Europe is projected to remain solid this year, despite losing steam mainly because of poor growth prospects for Turkey.

Economic growth in Romania is expected to slow down to around 3-3.1% this year, and to sink below 3% in 2020

Real GDP growth in Slovakia is forecast to remain strong – 3.3% – this year and to slow slightly down to 3.2% in 2020

Economic expansion in the Czech Republic is forecast to remain positive over the coming months, with an average growth rate of about 3% this year.

Real GDP growth in Poland is forecast to reach 4.4% this year, slowing down to 3.6% in 2020.

Financial conditions in Turkey will be tighter in the coming months.

Economic expansion in Bulgaria is expected to lose some momentum in 2019, but should remain strong at above 3%, spurred by robust household spending, strong wage growth and an improving labour market

Economic growth in Hungary gained momentum recently, with real GDP gains expected to reach 4.4% this year.

Iran continues to demonstrate economic resilience but prospects for integration into the world economy remain far off.

Argentina has introduced currency controls to stabilise peso in the run-up to elections.

The amount of suppliers facing insolvency will increase further in the coming 2-3 years, as many will find it hard to adapt to changing market conditions.

Many German Tier 2 suppliers face the issue that their products are easily substitutable, while their solvency and equity position is generally weak.