Magazine article Business Credit

Sectors Report Shows Robust Growth in Asia

Magazine article Business Credit

Sectors Report Shows Robust Growth in Asia

Article excerpt

The latest Sectors Report from Coface, the global credit insurer, shows an 4% overall increase in turnover from Q3 2011 to Q3 2012 with robust growth in emerging Asia, fair to fiat growth in North America and lagging performance in Europe.

Sectors covered include: chemicals, pharmaceuticals, wood/paper, transportation, machinery, metals, automobiles, construction, energy, agro/food, retail, textile/clothing, services and electronics sold in three geographic regions: emerging Asia, North America and the European Union. Four general criteria are used to gauge financial robustness: turnover, profitability, net indebtedness and cash flow.

Several sectors showed very strong growth and varied dramatically by region. For example pharmaceuticals and retail were up 30.1% and 38.7% respectively in emerging Asia. The same sectors in North America and Europe were flat or down. Likewise, textiles/ clothing grew 15.9% in Asia while the same sector grew by 8.2% in North America and 7.6% in the EU.

Here is a partial sector-by-sector synopsis.

Chemicals: Thanks to high demand in emerging Asia, demand is high and will remain so thanks to Chinese government stimulus measures. In North America, the development of shale gas as a feedstock and energy source is driving chemical industry profits up. European producers, meanwhile, continue to lag, especially in plastics.

Paper/wood: While the sector remains healthy, consumption is down in industrialized countries. However, the slack is being taken up in Latin America and emerging Asia. …

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