Reports

Atradius explores how rising corporate debt in EMEs affects corporate creditworthiness and identifies the most exposed countries and vulnerable sectors.

In 2015, Austrian business insolvencies decreased by 5%. However, in 2016 the pace of corporate insolvency decrease is expected to slow down to just 2%.

In Belgium, business failures are expected to decline by 7% in 2016. The level of corporate insolvencies will still be higher compared to 2008 levels.

The Danish economy is expected to grow 1.4% in 2016 spurred by improved investment and growing exports. Danish exporters will benefit from rising demand.

French business insolvencies are expected to decrease only about 4% in 2016. The number of insolvencies will still be about 10% higher than in 2008.

In 2015, the German economy grew 1.7%, spurred by household consumption which increased 1.9%. Private consumption remains a key driver of growth in 2016.

The Irish economy registered a strong performance, increasing 5.2% in 2014 and 6.8% in 2015. In 2016, growth is expected to slow down but remain robust.

Since 2014, Dutch business failures started to decrease, and are expected to decline further in 2016. However, this figure is still higher than in 2008.

Italy is expected to see only a modest insolvency decrease in 2016 after years of steady increases. This is in line with the modest economic rebound.

In 2016, Spain is expected to see another improvement in business failures (10% decrease), but compared to 2008 levels, insolvencies remain high.

The Swedish economy is forecast to grow 2.9% in 2016. Supported by low interest rates, household consumption and investment are expected to grow.

Swiss business insolvencies increased 7% in 2015 due to a more difficult economic environment. The number of corporate insolvencies remains high in 2016.

In the United Kingdom, consumer spending is still fuelling the economic expansion, helped by a decrease in unemployment and low consumer price inflation.

Poor payment practices of B2B customers caused financial distress on businesses in Western Europe and a ripple effect throughout the whole supply chain.

Due to late payment, nearly twice as many respondents in Austria (21%) than in Western Europe delayed investment, in property, plant and equipment.

As seen in France, more respondents in Belgium (30%) than in Western Europe (22.4%) expect deterioration in their DSO over the next 12 months.

Half of our Danish respondents (27% in Western Europe) said that B2B customers delay payments as they use outstanding invoices as a form of financing.

Notably more respondents in France (31.3%) than in Western Europe (22.4%) expect deterioration in their DSO over the next 12 months.

93.0% of respondents in Germany experienced late payment of invoices by B2B customers over the past year. This in spite of very strict payment terms.

Far more respondents in Greece (87%) than in Western Europe (57.9%) said that domestic B2B customers pay invoices late due to liquidity issues.