2014 brought better conditions for the business activities of companies in the CEE, thanks to a rebound in domestic demand (especially household consumption in most CEE economies), as well as improved Eurozone prospects. These improvements were also confirmed on the microeconomic side. The CEE’s regional average for company insolvencies dropped by 0.5%, although insolvency dynamics vary between CEE economies. A strong rise in insolvencies was recorded in Slovenia and Hungary, whereas Serbia and Romania enjoyed a much lower number of bankruptcies than in the previous year. These fluctuations in insolvencies are determined not only by different economic conditions in particular countries, but also by their differing insolvency law regulations.
Many countries are facing the full brunt of the decline in oil prices, especially emerging countries for which Coface has revised growth forecasts to 4% for 2015 (compared to 4.2% in March 2015). Meanwhile, developed economies (2% growth forecast for 2015 and 2016) are benefiting from the slight recovery taking shape in the eurozone (1.5% in 2015).
April 1st 2015 marked the end of milk quotas in Europe, a regulatory tool imposed in 1984 in response to overproduction, leading to the so-called “butter mountain” and the “milk lake”. For the first time in 30 years, the market alone will determine the quantities of milk produced. Are French dairy farmers ready for this? Is the abolition of milk quotas going to make it possible for milk producers to supply the rapidly growing markets in Asia? Or to develop to meet the high level of demand for organic products?
Coface, one of the the leading credit insurers and market leader for information in Central Europe, re-launches its online business information marketplace. InfoICON – the biggest database in CEE – provides online information on more than 43 million companies in Western, Central and Eastern Europe.
Coface’s annual survey on Asia-Pacific region questioned 2,695 companies in 8 economies. 70% of the companies surveyed experienced overdue in 2014 - the highest level in 3 years. In addition, 37% of the respondents reported that overdue amounts increased in 2014, up by 2% compared with the previous year. Companies in China, India, Hong Kong and Thailand are particularly affected.