Euler Hermes, the worldwide leader in credit insurance, publishes its Q1 2018 country and sector risks ratings. Euler Hermes monitors 242 countries and territories using about 40 short-term and medium-term indicators to measure the risk of payment disruptions in a given country that are outside the control of companies. Overall, Ghana, Côte d’Ivoire, Egypt and Russia’s ratings were upgraded, while Romania, Algeria and Tunisia’s ratings were downgraded.
Euler Hermes also specifically monitors the risk of non-payment in 18 sectors across 76 countries. In Q1 2018, the ratings of 21 industries were upgraded, mainly in Latin America (7), Western Europe (6) and Asia (5). By comparison, only 10 sectors were downgraded. This reflects a broad based improvement on demand and profitability, as numerous sectors cash in on the acceleration of global growth; indeed, Euler Hermes recorded more sector upgrades than downgrades for the third consecutive quarter.
“There is still room to grow: we forecast one to two years of additional growth globally. Nervous financial markets, tighter liquidity conditions, and looming protectionism are typical tensions for a late phase of the economic cycle.” said Ludovic Subran, Chief Economist at Euler Hermes.Ludovic Subran, Chief Economist at Euler Hermes.
The country and sector risks maps as well as our latest global macroeconomic forecast are available here.
