Business Confidence Index Q2.23 Published
The tightening credit environment has seen an overall contraction in demand and ST risk appetite as BU members signal rising claims. MLT projects seeking ECA cover appear strong in the second quarter.
Growth in ST demand appears to be slowing in line with the slump in merchandise trade at the end of 2022 and the start of 2023. Green investment continues to be the most significant driver of demand for new MLT cover.
The volume of ST emerging claims situations skyrocketed in the first quarter of the year as bankruptcies in the US and Eurozone reach the highest in this period for 10 and 8 years, respectively. The external debt positions of many sovereigns alongside deteriorating credit conditions for many corporates are driving pre-claims situations for MLT business.
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