Aruanded

Despite still high growth rates the sector is facing a challenging economic environment, with fiercer competition and oversupplies in some segments.

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.

While many Japanese ICT businesses are highly indebted, companies obtain finance easily as banks are very willing to lend and interest rates are low.

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.

Despite overall growth, many French ICT companies face structurally low margins, price pressure and an on-going consolidation process in the market.

While Dutch ICT distributors are becoming larger, many smaller companies are changing their business model to have a more service-oriented approach.

Despite robust growth rates, pricing pressure and cheap imports are key challenges in the domestic ICT market, especially for smaller IT distributors.

Due to limited organic growth opportunities and the on-going economic uncertainty, market players strive to expand through acquisitions and specialisation.

Despite signs of stabilisation since H2 of 2017 the ICT sector remains fragile, with businesses’ profit margins expected to shrink further in 2018.

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.

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.

In 2018 the number of Belgian business insolvencies will still be higher than the levels seen before the start of the global credit crisis in 2008.

The Danish economy has regained some of its international competitiveness due to structural reforms that addressed the issue of high labour costs.

Economic expansion remains broad-based, driven by private consumption and business investments, while export growth is sustained by the eurozone demand.

With about 55,000 business failures recorded in 2017 the number of insolvencies was still as high as during the start of the credit crisis in 2008.

The Irish economy is expected to grow by about 4% in 2018, but remains exposed to ongoing economic uncertainties stemming from the Brexit decision.

Despite a forecast 10% year-on-year decrease in 2018 the number of business insolvencies will still be much higher than the levels registered in 2008.

In 2018 and 2019 economic growth is expected to moderate somewhat but to remain robust, with private consumption and investment remaining the key drivers.