Despite the challenges already visible in the economy for next year, with rising inflation and rising interest rates, companies in the country are optimistic. A study conducted by COSEC – Companhia de Seguro de Créditos shows that 48.8% of small and medium-sized enterprises (SMEs) surveyed expect to maintain turnover levels in the next twelve months and 32% estimate an increase of 25%. Only a small portion of the 521 participants, 5%, hope to earn above this target. On the other hand, and with a less optimistic view, there are 13% of respondents who expect billing interruptions of up to 25%.
The current situation, characterized by the armed conflict in Ukraine and the increase in energy costs, are the main reasons for concern for the next six months. The companies also point to the logistical constraints on the transportation of products as one of the challenges in the operation. “The economic climate in Portugal, and in the rest of the Eurozone, is one of some uncertainty. The high inflation plaguing the Old Continent and rising interest rates are some of the areas of uncertainty and concern for businesses. also surprising that most of the companies surveyed are moderately optimistic or moderately pessimistic about the outlook for their business in 2023,” justifies Vassili Christidis, CEO of the insurance company.
Data revealed by the COSEC Observatory of Business Risk also indicates that the European Union is preferred when it comes to selling abroad. At the top of the list of main destinations for Portuguese exports are Spain, France, Germany and the United Kingdom. Across the Atlantic, the North American market is also gaining importance for Portuguese companies selling abroad.
Payment of credits remains stable
The insurance specialist also indicates that most SMEs (79%) sell on credit. And even as the economy is already showing signs of a downturn, consumers continue to meet their payment obligations. 66% of the companies surveyed say they have not registered any bankruptcies in the past six months and 64% acknowledge that the evolution of the average payment term has remained constant during this period.
Despite the high percentage of sales on credit, it is not in the habits of this business fabric to take out insurance to secure less optimistic scenarios. “While most of the more than 500 companies that responded to the Observatory sell on credit, less than 20% assume they have credit insurance. On the other hand, credit insurance is not a priority for the company,” continues COSEC . The credit insurer explains that most risk management measures are “carried out through analysis by the respective finance departments, which may mean they choose not to sell in higher-risk regions.”
Source: DN
