Asian businesses bolster credit risk management amid optimism for future growth, Atradius survey reveals
AMSTERDAM, Oct. 25, 2023 /PRNewswire/ -- While there is an anticipation of global trade expanding by slightly over 3% in 2024, the pace of growth in Asia is forecasted to remain subdued and may not be as robust as it was in previous years. The key factor inhibiting growth can be attributed to an ongoing underperformance in exports, which is likely to continue in the short-term due to weaker demand from Asia's main export markets, such as the United States and European Union, and could potentially weaken the domestic resilience shown by Asian economies this year.
- One illustration of this is a 6% overall drop in Asian businesses B2B trading on credit over the past year with variations in different markets.
- Our survey revealed that 70% of Asian companies expect rising demand for their products and services in the months ahead.
- The survey underscores the adaptability of Asian businesses in the current economic turbulence, emphasizing the importance of thorough risk assessment when trading on credit with B2B customers.
- Their ability to integrate trade credit insurance into their risk management framework showcases their resilience and forward-thinking approach to business operations and cash flow risks mitigation."