In this edition of our Economic Update, we share our insights on Global auto outlook: Steering through turbulence and The cost of pay me later. Additionally, we dive into Global economic outlook 2024-25 and The best is yet to come. Allianz Trade for Multinationals provides bespoke solutions to support growth in new and existing markets for multinationals and financial institutions. We offer a wide range of solutions including World Program, Specialty Credit, Excess of Loss and E-Commerce credit insurance.
The automotive market is normalizing amid slowing registrations and increased competition, with a significant shift towards electric vehicles (EVs) globally. European and German automakers struggle, while Chinese EVs face hurdles. In the US, industrial policies drive EV adoption despite cost and political challenges.
In 2023, corporate financing challenges peaked with significant payment term extensions, pushing Global Working Capital Requirements (WCR) to 76 days, impacting over 42% of global companies. Amidst a profitability squeeze, particularly in Europe, addressing late payments is crucial for building resilience.
The economic forecast predicts slow global growth with GDP projected to increase by less than 3% between 2024-25. Advanced economies are expected to grow modestly at 1.6% while emerging markets may slow to about 4%. Moreover, the US-Europe growth gap is projected to narrow by late 2024. Central banks are preparing rate cuts to boost the economy, and companies face pricing power decline and slow growth.
Households in nine Eurozone countries doubled their total financial assets in two decades but inflation has eaten up more than 80% of their asset returns, resulting in negative returns for Austria and Germany. While Baby Boomers have accumulated the most wealth, Gen X and Gen Z can attain the same savings-to-income ratio by adjusting their savings behavior.
Trumponomics: the sequel
Whoever wins the US elections in November will have to contend with a changing economy.
In this episode, we discover what a potential second Trump presidency could mean for growth, inflation, and capital markets, as well as trade, fiscal and industrial policies.
