The UAE’s economy was hit by a double shock in 2020: the collapse in oil prices and the COVID-19 pandemic. According to preliminary estimates, the UAE’s economy shrank by 6.1% in 2020. However, the outlook is brighter for 2021. Coface expects growth at 3.1% thanks to a fast vaccination campaign, a sharp recovery of the global economy and the rebound in energy prices.
All the News
Coface Study: Insolvencies in Romania increased in the first semester of 2021 by 23% compared to the same period last year
The latest Coface Romania study shows that in the first six months of 2021, 3,033 new insolvency proceedings were opened, +23% above the level recorded in the same period of the previous year. Insolvencies opened in the first half of this year have returned close to the level before the Covid-19 pandemic and are expected to increase by at least 10% over the previous year. The number of employees reported by insolvent companies in the analyzed period is 11,294.Read More
The metals used in electric vehicles, such as lithium, cobalt and copper, are at the heart of the revolution currently taking place in the automotive industry. Strict regulations, government support programmes, and the increased use of electric vehicles in certain regions are all strongly stimulating demand for these metals, which are now indispensable in the manufacture of batteries. Imbalances between supply and demand are thus pushing up their prices, even though the market share of electric vehicles remains modest. In its latest analysis, Coface does not foresee any major changes in these price trends over the next two years.
18 months after the start of the pandemic, access to vaccination is now the main factor setting the pace of people's daily lives and the global economy. GDP growth forecasts for 2021 have been revised upwards (+5.6%), but this is mainly the result of positive surprises from the United States. These improved growth prospects are reflected in world trade: after a 5% decline in volume last year, Coface forecasts an 11% increase for 2021.Read More
Coface’s 2021 Asia Corporate Payment Survey, conducted between October 2020 and March 2021, provides insights into the evolution of payment behavior and credit management practices of over 2,500 companies across Asia Pacific during a pandemic year. Respondents came from nine markets (Australia, China, Hong Kong SAR, India, Japan, Malaysia, Singapore, Thailand and Taiwan) and 13 sectors located in the Asia Pacific region.Read More
Remote work has emerged as a new norm during the Covid-19 pandemic. As we emerge from the crisis, this cultural shift could allow companies located in developed countries to hire teleworking talent in emerging countries to reduce their labour costs. Coface estimates that the total number of teleworkable jobs in high-income economies is about 160 million, while the number of potential teleworkers in low- and middle-income economies is about 330 million. Coface also estimates that French compaines would save 7% on labor costs even if only 1 in 4 teleworkable jobs were offshored.Read More
Overall, the Chinese economy expanded by 2.3% in 2020, being the only major economy to record growth, and Coface expects the GDP to accelerate to a 7.5% growth in 2021.This would be the fastest pace since 2013, and comfortably above the minimum of 6% set by the authorities.Read More
Insolvencies in Germany dropped significantly in 2020 compared to 2019, despite the worst recession since 2009. This is largely thanks to public support programmes. However, the early-announced applications for regular insolvency proceedings (Regelinsolvenzverfahren) at courts already increased sharply in February and March, signaling a pending increase in corporate insolvencies in the next months. Coface’s forecasting model shows that up to 4030 insolvencies were prevented by the State-support in 2020, which is now in single parts being withdrawn, and could take place in 2021/22. From a corporate perspective, the crisis is far from over.Read More
As a leading player in credit insurance, Coface supports companies with guarantee instruments that help them take part, in safe conditions, in public procurement procedures. The surety bonds offered by Coface represent a viable alternative to the letter of credit and are dedicated to companies involved in public procurement contracts.Read More
More than a year after the start of the pandemic, global economic trends are uneven due to lingering uncertainties around the spread of COVID-19. The acceleration of the vaccination process, as well as its effectiveness, are key to an economic recovery. In this context, the prospects for a return to normalcy are both uneven and uncertain across sectors of activity and geography, according to the latest barometer from Coface.
Turnover: €378m, up 4.2% at constant FX and perimeter
Trade credit insurance growing by 6.1% at constant FX benefiting from stabilising client activity
Client retention close to record highs; positive price effect (+2.9%)
Business Information continues to grow (+9% at constant FX)
Factoring and debt collection down on lower volumes
Coface Romania Analysis: Vulnerability of the business environment in the context of the Covid-19 pandemic
Coface Romania launched an analysis of the business environment in the context of Covid-19 during Country Risk Conference, a business event with tradition, now in its 16th edition, held on April 21. According to the data, 4 out of 10 companies active on the domestic market were already vulnerable before the negative economic impact caused by the Covid-19 pandemic during 2020.
As the world's largest importer, and second largest exporter of manufactured goods, the United States has had a trade deficit since the early 1970s. Escalating trade tensions - in particular with China - and the COVID-19 pandemic, which disrupted trade flows have affected the trade balance in recent year. The trade deficit has reached a record level of over 900 billion USD in 2020.Read More
The economic crisis caused by the COVID-19 pandemic heralded major business failures and insolvencies in France, and across the eurozone as a whole. But, in 2020, and even if the real impact of the COVID-19 crisis remains uncertain, the number of insolvencies actually fell in all major European economies. According to research by Coface, a leading player in credit insurance, the gap between the expected deterioration of the companies’ financial health and the number of insolvencies suggests that there is a high number of “hidden insolvencies” that have been postponed, rather than prevented. This suggest that, in both France and Europe, there is high number of unviable companies whose failure is only a matter of time.Read More
Diversification is one of the many effects of oil price volatility on Middle Eastern and African oil producers
The COVID-19 pandemic’s negative impact on global GDP growth and global trade volumes has caused a sharp drop in oil prices in the spring of 2020. This price drop, even if temporary, has affected Middle Eastern and African oil exporters differently, in line with their national output’s dependence on oil, as well as their fiscal strength and international reserves.
The year 2020 was marked by the COVID-19 pandemic. In order to mitigate the impact of this difficult economic situation on Polish companies, various liquidity-supporting aid measures were introduced, such as tax and contribution exemptions and deferrals. As a result, despite the extensive economic crisis, payment delays between companies have shortened – however, with these aid measures are to be phased out in 2021, two thirds of companies expect their business activities to deteriorate this year.Read More
Coface Study: Insolvencies in Romania decreased by 13% in 2020 compared to the previous year and are at the minimum of the last decade
The most recent study by Coface Romania shows that in 2020, 5,564 new insolvency proceedings were opened, with -13% below the level registered in the previous year. Last year also reported the minimums of the last decade in terms of payment incidents (only RON 2.2 billion, -29% vs. 2019) and the regeneration ratio (OUT: IN = 1.19) in the business environment. All these positive developments are exceptional, given that they were recorded in a year with the most severe economic contraction of the last decade in the context of the Covid-19 pandemic.Read More
As it releases its latest quarterly risk Barometer, and its annual Country & Sector Risk Handbook, Coface, a leader in credit insurance, highlights an uneven recovery across countries, sectors of activity, and income levels. Although the performance of China and other Asian economies is boosting global growth, the main mature economies will not return to their pre-crisis GDP levels this year. This rise in inequality, along with public dissatisfaction with the government's handling of the pandemic in many countries, is conducive to the emergence of more frequent potential protests and violence this year.Read More
Turnover: €1,451m, down by -0.6% at constant FX and perimeter
Trade Credit Insurance decreasing by -0.8% at constant scope and FX
Client retention reaches new record levels. New business increasing to €138m
Improving pricing conditions confirmed and lower client activity continues
Following the change in the shareholder base and the arrival of Arch Capital Group Ltd. (Arch) - (NASDAQ: ACGL) - in Coface's capital, COFACE SA's Board of Directors is evolving. Bernardo Sanchez Incera has been appointed Chairman of the Board of Directors.
The transaction between Natixis and Arch for the sale of a stake in Coface's capital, which was announced on 25 February 2020, has received all the necessary approvals for its closing. As a result, Arch now holds 44.8m shares of Coface, representing 29.5% of the company's capital.