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Coface 2006 risk assessment.(INTERNATIONAL SECTION)

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| April 01, 2006 | COPYRIGHT 2006 National Association of Credit Management. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

According to Coface, world growth should remain steady in 2006, still underpinned by strong American and Chinese demand. However, Coface remains concerned about persistent pressure on company margins, especially in industrialized countries and in Asia.

* Stiff competition is making it difficult to pass on rising production costs to customers, while at the same time the influx of investments may cause overcapacities in emerging countries such as China.

* The progressive rise in interest rates is likely to boost the cost of financial resources.

* Stricter health and environmental regulations, both at a national and international level, will ...

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Source: HighBeam Research, Coface 2006 risk assessment.(INTERNATIONAL SECTION)

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