Credit Management April 2024 issue

Time to take
a look at Israel?
CONSIDERING what is going on in Israel it’s
hardly surprising that some think that the
country is in a pickle.
The Bank of Israel has cut its forecasts
for growth; government spending is
markedly up to pay for the military
operation; tourism and business travel has
fallen through the floor; and workers are in
short supply as army reservists have been
called up and work permits for Palestinians
have been withdrawn.
However, MoneyWeek thinks that Israel
has plenty of potential. It has a strong
technology sector spurred on by venture
capitalists and entrepreneurs. Tech
accounts for 18 percent of Israel’s GDP
compared to just 10 percent for the US
- less for most European countries; tech
products and services account for almost
50 percent of exports.
Further, Israel has a culture of
entrepreneurship and more than 100
privately-owned companies worth more
than $1bn. And while defence spending
is high much of that finds its way into
commercial ventures. Not bad for a
country with only 9.3m people.
With all of its travails, Israel might find
that the opprobrium it faces will dissipate
and Arab states such as Saudi Arabia and
Egypt will normalise relations; there could
even be a settlement with the Palestinians.
And if peace were to follow defence
spending may fall leaving money free for
elsewhere.
With a well-managed economy, a GDP
per capita greater than that in the UK and
much of Europe, Israel could become a
destination of choice.
GOVERNMENT
GUIDANCE ON CPTPP
THE Government has a page for
exporters on GOV.UK that offers
business guidance, treaty information
and other documents to help them
understand what the UK’s accession
to the Comprehensive and Progressive
Agreement for Trans-Pacific Partnership
(CPTPP) means.
The page features guidance on how
to get advice; how to export; the rules
of origin; how to find the relevant duty
rates and commodity codes for goods;
and how to get help via the export
support team.
The Government believes that the
“page will be a tool for businesses to
access resources that helps maximise
their utilisation of the agreement” once
the UK has fully joined the CPTPP.
Look for The UK and the
Comprehensive and Progressive
Agreement for Trans-Pacific
Partnership (CPTPP).
High LOW TREND
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GBP-CHF 1.12869 1.10862 Up
GBP-AUD 1.95607 1.92012 Up
GBP-CAD 1.73913 1.69789 Up
GBP-JPY 191.292 187.995 Up
North Carolina group meeting
UK and the US state of North Carolina
recently held a working group meeting in
Charlotte, the third since the signature of
the UK and North Carolina Memorandum
of Understanding.
Charlotte is one of the fastest growing
cities in the US and is the country’s second
largest banking centre after New York City.
The first meeting was held in the US, in
Raleigh in January 2023, and the second in
the UK, in Manchester in June 2023.
As the UK government report outlined,
“attendees discussed the progress made
since the last meeting in June 2023
pointing to the measurable achievements
in key focus areas.” These include
Cambridge-based Marshall Aerospace
opening a new aircraft maintenance facility
and engineering hub at the Piedmont
Triad International Airport in Greensboro,
North Carolina; and better access to
procurement opportunities with North
Carolina officials sharing insights into
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This data was taken on 18th March
and refers to the month previous
to/leading up to17th March 2024.
how UK companies could take part in the
state’s procurement process.
Going forward, UK firms and officials
will participate in the University of North
Carolina at Chapel Hill Clean Tech Summit
in March 2024; a trade mission of UK
Motorsport companies to North Carolina
in late Spring 2024; and the next working
group meeting that will coincide with a
delegation of North Carolina officials’ visit
to the Farnborough Air Show in July 2024.
“Attendees discussed
the progress made since
the last meeting in June
2023 pointing to the
measurable achievements
in key focus areas.”
COFACE COUNTRY AND
SECTOR HANDBOOK
TRADE financier and debt collector,
Coface, recently published the 2024
edition of its Country and Sector
Risk Handbook which examines the
prospects for 160 countries and 13
sectors.
The booklet notes that 2023 was
not as bad as predicted and that some
of the risks, most notably in terms of
energy supply, did not materialise and
the global economy looks like it grew
by around 2.5 percent. It records that
equity markets were unperturbed by
rising interest rates and inflation fell
faster than expected due to lower
commodity prices.
As for 2024, Coface reckons that
“the only certainty we can have is that
of being surprised.” And that’s likely
given that there are legislative and/or
presidential elections scheduled in 70
countries that account for over half the
world’s population and GDP. On top of
that is Ukraine and the conflict in the
middle east.
On a positive note, there’s the
potential for the weakening of the
dollar and lower interest rates that
should help emerging economies.
Brave | Curious | Resilient / www.cicm.com / April 2024 / PAGE 45