The global outlook is still very uncertain going into 2012. While the US appears to have weathered its recession and is set to consolidate its recovery, we are concerned that in China a correction is imminent in some sectors, which would slow expansion in one of the key engines of global growth. In Europe, meanwhile, December’s summit agreement amongst the euro-zone countries is unlikely to stop the EU entering a recession in early 2012.
In this context, we believe that the global economic slowdown will have accelerated insolvency levels over Q4 2011, and that this trend will continue into 2012. Moderating economic growth will weaken corporate profits, raising the risk of insolvency in many economies, particularly in the euro area.
This complimentary newsletter from D&B's Country Risk Services group has been put together by our team of economists using the most up-to-date information to provide a snapshot of the latest cross-border risk situation, and provides an excellent overview for those involved in cross-border trade and direct business investment.