Asian businesses are intensifying their credit risk management strategies as they maintain optimism for future growth, according to research by specialist insurer Atradius.
Some 70% of those polled anticipate an upsurge in demand in the coming months and are committed to addressing payment challenges inherent to business-to-business (B2B) trade.
While there is an overall expectation of global trade expanding by slightly over 2% in 2024, the pace of growth in Asia is anticipated to remain subdued, not reaching the levels seen in previous years. This restraint in growth, Atradius said, can be attributed to a continuing underperformance in exports, which may persist due to weaker demand from major export markets like the United States and the European Union, potentially weakening the domestic resilience exhibited by Asian economies this year.
Another example of this situation is a 6% decline in Asian businesses’ B2B credit trading over the past year, with variations in different markets. Taiwan and Singapore witnessed significant drops, while China and Vietnam saw an increase in B2B sales on credit.
Nevertheless, Asian businesses are found to be optimistic about their growth prospects in the near future, as evidenced by the results of Atradius’ survey, which encompassed companies in China, Hong Kong, Indonesia, India, Japan, Singapore, Taiwan, and Vietnam.