A deterioration of trade relations with China could negatively affect the ICT component supply side and confront US end-consumers with higher sales prices.
Despite increasing challenges a recovery of the exchange rate and a rather stable economic outlook for 2018 should help the ICT industry in the short-term.
Despite continued sales growth, most German ICT businesses operate on very tight margins due to fierce competition and price erosion in most subsectors.
Payment experience over the past two years has been good in the ICT sector and the level of insolvencies is low, with no major change expected in 2018.
Due to limited organic growth opportunities and the on-going economic uncertainty, market players strive to expand through acquisitions and specialisation.
Payment behaviour in the ICT sector has been good over the past two years, and the number of payment delays and insolvencies is expected to remain low.
Despite minor improvements, the impact of late payments cannot be denied and businesses in Asia Pacific need more time to convert B2B invoices into cash.
Payment delays have remained largely stable and payment duration improved. Bankruptcy and failed collection attempts remain top reasons for write-offs.
Despite improvements, the proportion of overdue B2B invoices and that of uncollectable B2B receivables in Hong Kong remain some of the highest in Asia Pacific.
2018 brought many changes in India – more frequent payment delays, increases in the proportion of overdue B2B invoices and DSO, a longer payment duration.
Changes in the average payment terms and payment delays brought an increase in Taiwan’s average payment duration which is the second highest in the region.
In 2018, economic growth is expected to remain above 2%, sustained by domestic and international demand. The momentum is forecast to slow down in 2019.
Economic expansion remains broad-based, driven by private consumption and business investments, while export growth is sustained by the eurozone demand.
In 2018 and 2019 economic growth is expected to moderate somewhat but to remain robust, with private consumption and investment remaining the key drivers.
A potential downside risk would be another deterioration in house prices, given high levels of mortgage debt and banks’ exposure to the housing market.
A potential downside risk to the economic performance could be the high household debt in case of sharp house price decreases and interest rate increases.
British business insolvencies are expected to rise again in 2018, mainly affecting businesses active in the construction, retail and hospitality sectors.
Since H2 of 2017 economic growth has recovered from low copper prices and lower demand from China, strikes in the mining sector and weaker domestic demand.
Since H2 of 2017 GDP growth has started to accelerate again, due to a more supportive external environment and the effects of monetary policy stimulus.
In 2018 sales are expected to be affected by slower household spending growth, triggered by a weaker housing market and subdued growth in household income.
Indonesia's retail sector is one of the most promising in Asia, on the back of its large population and growing middle class with higher purchasing power.
The short-term outlook is benign with private consumption expected to increase by more than 6% in 2018, but higher inflation could have a dampening effect.
The best way for smaller retailers to survive is to join a large purchasing association and to compete with e-commerce by providing outstanding service.
The business environment is highly competitive among the different distribution networks, reinforced by the increasing market share of online retailers.
Many long-standing retail chains are highly indebted, often from leveraged buyouts led by private equity firms, while investors reconsider further lending.
