Triple interest clamp for companies
According to the Allianz Global Survey Report on exporting companies, the projection of companies this year is not to enter new markets, but to maintain their strength in existing markets.
According to the company statement, Allianz Trade has published the second Global Survey Report carried out with exporting companies.
According to the survey of nearly 3,000 exporting companies from France, Germany, Italy, Spain, Poland, the UK and the US, while companies are relatively optimistic about their export prospects in 2023, they remain concerned about economic uncertainty.
According to the survey results, the rate of participants expecting an increase in the risk of not getting paid on exports increased by 11 points over the survey at the beginning of 2022, reaching 40 percent on average.
NUMBER OF COMPANIES WAITING FOR INCREASE IN TURNOVER DECREASE
According to the survey, which includes questions on exports, supply chain disruptions and environmental, social and governance (ESG) strategies, there is a decrease in the proportion of companies expecting an increase in turnover compared to last year . In 2022, 80 percent of the participating companies expect the turnover obtained through exports to increase compared to the previous year, while this year this rate has decreased to 70 percent.
This decline is interpreted as a reflection of the less confident global business environment in 2023.
Although world trade grew by 3.8% in 2022, this rate is 0.7% in 2023.
It is claimed that 63 percent of the Allianz Trade Global Survey participants, who stated that the appetite of companies for new markets has decreased and that the priority is the consolidation of existing markets, prefer to increase their investments in the countries in which they are currently.
According to the report, 47 percent of participants plan to invest in new countries. Furthermore, in terms of export strategies, more than 55 percent of the companies plan to increase their market share in the countries where they are located, while approximately 52 percent plan to diversify their markets and target new countries.
CASH LEADER IN EXPORT FINANCING
According to the survey, it is stated that companies will finance their export development plans based on cash, bank loans and payment terms. However, it is emphasized that there is not much difference between the alternatives in an environment where the cash buffers that companies can draw on are dwindling and bank lending conditions are tightening.
In addition, almost 75 percent of the respondents indicate that logistical barriers and high transportation costs will have a strong impact on export activities in 2023.
More than 80 percent of respondents say they will prioritize business continuity over ESG commitments in 2023 due to the economic slowdown and financial constraints. On the other hand, companies have not completely given up on their ESG goals.
GLOBAL BANKRUPTCY EXPECTED TO INCREASE 21 PERCENT
Aylin Somersan Coqui, Allianz Chief Commercial Officer (CEO), said: “As central banks continue to raise interest rates to reduce inflation, companies face a combination of lower demand, additional pressure on profitability and tighter credit conditions. strict.
In this context, they are preparing for longer payment terms and the risk of not collecting more on exports in 2023. This is also in line with our projection for global bankruptcies, which we expect to increase by 21% in 2023 after an increase in 2% in 2022”. made the statement. (AA)