Since 2012, economic growth has been high, driven by private consumption which accounts for about 70% of the economy. Growth has also been sustained by rising demand for exports.
The payment default environment observed in Great Britain suggests businesses are making a strong effort to improve business profitability by managing their receivables portfolios more efficiently.
Consistent with Western Europe overall, one in four survey respondents in Belgium consider cost containment to be one of the biggest challenges to business profitability in 2015.
The strong focus on protection of exports from the risk of payment default by customers comes as no surprise for the Netherlands, whose GDP growth is heavily dependent on international trade.
24% of survey respondents in Austria were concerned about maintaining sufficient cash flow levels. They consider this as one of the greatest challenges to business profitability in 2015.
28% of the respondents in Ireland, compared to 18% in Western Europe, reported that maintaining adequate cash flow is one of the biggest challenges they will be facing in 2015.
Nearly 73% of survey respondents in Italy reported that late payment from domestic B2B customers is mainly attributable to insufficient availability of funds.
Survey respondents in Germany show a risk averse approach to trade credit which may be explained by a notable increase in the level of overdue domestic and foreign payment over the past two years.
We forecast the oil price will start rising in the fourth quarter of 2015 to USD 75 on average in 2016. Discover the impact on sectors and countries across the globe.
The Chinese retail market remains highly fragmented due to the large population and differences in consumer behaviour and purchasing power across the country.
The US economy is expected to grow 3.1 % in 2015, while unemployment is expected to drop to 5.5 %. Together with improving consumer sentiment, those indicators support higher top-line sales growth.
In the UK, consumer confidence and discretionary income have shown significant improvement over the past 12 months. The overall trend in consumer durables retail performance has been an improving one.
The forecast for Spain ́s economy seems to sustain further consumer durables sales in 2015. However, for some segments growth could be lower, given high purchase levels already seen in 2014.
German consumer durables retail benefits from the country ́s robust economic performance, with household consumption expected to grow 2 % in 2015 after 1.2 % registered in 2014.
Peru’s economic growth is expected to accelerate in 2015 spurred by lower interest rates, two mega mining projects, strong demand and public investment in infrastructure projects.
In 2015, Colombia’s economic performance is expected to slow down somewhat (to 3.8%) due to lower commodity prices, while robust domestic demand should sustain growth.
Argentina’s economy contracted 1.6% in 2014, and this negative trend is expected to continue in 2015, as exchange and price controls are forcing producers to scale back their activities.
Italian GDP is expected to grow after three years of contraction. Domestic demand is forecast to stabilise as investments and household consumption are expected to accelerate.
