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.
Land acquisition issues in setting up greenfield projects, delays in environmental clearances, logistics support and external financing remain major issues
Structural overcapacity in the industry had a negative effect on businesses´ profit margins in 2014, and this negative trend is expected to continue in 2015.
On 15 October 2015, Atradius Credit Insurance hosted a webinar that looked at the opportunities available for trade with Russia and how to safely transact your business.
In 2015, Australian business insolvencies are expected to increase slightly by 2% as economic growth slows down and the mining industry faces mounting troubles.
The sector benefits from higher machinery investments as the Japanese economic recovery is on track (GDP is expected to grow 1.0% in 2015 and 1.5% in 2016 after a modest contraction in 2014).
Compared to other US industries the rate of insolvencies is low in the machinery sector, and it is expected that business failures will level off or even decrease slightly (by about 1%) in H2 of 2015.
The outlook for the machinery industry is promising, as the Italian economy is expected to grow 0.6% in 2015 and 0.9% in 2016 after two years of contraction.
The machinery sector should benefit from the economic rebound in France, with GDP forecast to grow 1.1% in 2015 (after 0.2% in 2014) and stronger growth in industrial production and exports.
China’s machinery sector has seen high overcapacity: profits of machinery businesses will be squeezed further by fierce competition, as companies have to offer lower prices to keep market shares.
An expected rebound in agriculture will lead to higher GDP growth in 2015, forecast to increase 4.6%. Growth is also sustained by increasing exports, mainly to the eurozone.
Concerns in 2014 over an impending crisis in Russia were overblown. But insolvencies have increased and specific industries are affected badly by the ongoing recession.
Despite its growing economy, Japan faces major demographic challenges. There is an urgent need to make the labour market more flexible to achieve a sustainable rebound and boost economic performance.
The UK economy expanded by 2.6% in 2014, the fastest pace of growth since 2007. While consumer spending was the main driver, real fixed investments also increased.
While exports, industrial production and investments are expected to decrease year-on-year in 2015, private consumption is expected to rise 1.1% in 2015.
The Swedish economy is set to grow by 2.4 % in 2015, with industrial production rebounding after three years of decline. Household consumption and investment growth are expected to continue.
The rebound of the Dutch economy is expected to accelerate in 2015, with export growth accompanied by a recovery in private consumption, industrial production and investment.
In 2015, Ireland’s economy is forecast to grow by 3.6%, backed by exports to the US and UK where demand is picking up. Private consumption is expected to increase further.
In contrast to previous years when exports provided the main contribution to German economic growth, household consumption is expected to become the key driver in 2015.
In 2015 the French economy is expected to grow 1.1% as private consumption, manufacturing and exports improve. However, this projected growth rate remains below the forecast eurozone average of 1.4%.
The Danish economy is expected to rebound further, with a 1.8% expansion forecast for 2015 as private consumption and investment growth accelerate and export growth continues.
Belgian economic growth accelerated to 1.0% in 2014 after two years of weak performance. This improvement is expected to continue in 2015, with 1.2% growth in GDP forecast.
There are positive signs for the Turkish chemicals industry. In 2015, the chemicals sector is expected to grow driven by increasing demand and the positive effects of the lower oil prices.
In Q1 2015, the Dutch chemicals sector saw an increase in production and exports. Additionally, it is expected that Dutch chemicals businesses ́ investments will increase in 2015.
In 2015 Italian chemicals production is forecast to grow 1.4 %, due to increasing exports (up 3.2 %) and the first signs of improving domestic demand (up 1.3 %) after four years of contraction.
The chemicals sector is benefiting from the on-going US economic growth. US chemicals production growth is expected to increase 3.7 % in 2015 and 3.9 % in 2016 (after growing 2 % in 2014).
