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Global economy: industry is stalling

Global economy: industry is stalling

Despite the many obstacles in its path (diverse and varied political risks, high volatility of commodity prices, supply co n s tr a i nt s i n a d va n ce d economies, to name but a few), world growth in 2018 managed to sustain its 2017 rate (3.2%). However, the multiplication of these pitfalls began to slow growth down by the end of the year, to the point of darkening the outlook for the year ahead (Coface forecast: 3.0%). Although the extent of this decline seems modest, it is suffi cient for business credit risk to increase: Coface anticipates that the number of corporate insolvencies will increase in 24 of the 39 countries for which this data is available, which account for 65% of global GDP (Graph 1). This is five and nine more countries respectively than in 2018 and 2017. The United States has yet to be part of this, even though its peak growth rate also seems to have been exceeded.

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