Atradius publishes USMCA Payment Barometer
The latest ‘USMCA 2021 Payment Practices Barometer’ by Atradius (www.atradius.co.uk), reveals a stark USMCA north-south divide.
Economists at Atradius believe that the differences in how governments have managed the pandemic may be behind contrasting results in this year’s Payment Practices Barometer survey. Over 80% of businesses in Mexico anticipate growth over the coming year. In Canada, however, this percentage plummets to just 36%. Businesses in the U.S. reported a sentiment that falls about halfway between these two extremes.
“There will be a wealth of reasons behind this dichotomy,” says Gordon Cessford, Regional Director for North America at Atradius. “While the cohort of interviewees may well play a part, it is likely that businesses in each country worked through differing pandemic experiences. In Mexico, a light touch governmental approach to lockdowns meant that many businesses continued to trade without interruption. In Canada, the reverse is true.”
“Businesses in Canada and the U.S. may be bracing themselves for the withdrawal of government support packages during the second half of this year,” adds Andreas Tesch, Chief Market Office for Atradius. “Most financial observers predict an uptick in business insolvencies at this point. The pessimism expressed by businesses in Canada is likely to reflect their anticipation of a heightened risk environment.”
This survey was conducted in Q2 2021, a full year after the World Health Organization declared Covid-19 a global pandemic. In addition to capturing views reflecting business confidence, the survey took the pulse of business health through the key performance indicators of trade credit preferences, payment terms, DSO and credit management.
The USMCA 2021 Atradius Payment Practices Barometer can be downloaded from publications section of the Atradius website www.atradius.co.uk.