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07/06/2020
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Asia Corporate Payment Survey 2020: COVID-19 will overturn last year’s incipient recovery

Asia Corporate Payment Survey 2020: COVID-19 will overturn last year’s incipient recovery

After a 2019 that was dominated by trade tensions between the United States and China, Coface has observed an incipent recovery in Asia (excluding China), supported by supply chain shifts and additional liquidity from the US Federal Reserve[1]. Average payment terms improved in 2019, rising to 67 days compared to 69 days in 2018. And while 65% of companies reported experiencing payment delays in 2019 (63% in 2018), the average payment duration decreased to 85 days in 2019, down from 88 days in 2018.

However, this recovery will prove short-lived, as the COVID-19 pandemic severely threatens the growth outlook, with many economies in the region expected to experience their biggest contraction since the Asian Financial Crisis in 1997-1998.

On a GDP-weighted basis, the growth rate of Asia’s economies will fall to 0.3% in 2020 (-0.65% excluding China). This can be compared to the 2019 growrth rate of 4.6%, or even the 1998 rate, which – despite everything – was still higher: 2.9% (0.76% excluding China).

[1] Coface's 2020 survey on business payments covered more than 2,500 companies in Asia located in 9 countries (Australia, China, Hong Kong, India, Japan, Malaysia, Singapore, Taiwan and Thailand). Data was compiled in the fourth quarter of 2019, therefore these figures do not take into account the impact of the COVID-19 pandemic on the economy in the Asia-Pacific region.

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Diana OROS

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42 Pipera St., 6th Floor - 020112
District 2 - Bucharest
ROMANIA
T: +40 37 467 08 86
Email: diana.oros@coface.com
 

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