The Eurozone crisis continues to dominate the economic backdrop.
Latest figures for Spain showed the recession is continuing to deepen.
The jobless total topped 19.2 million at the end of March a rise of 1.7 million
in the past year. The unemployment rate in Spain is now running at 26.7 percent
only a little less than Greece at 27.2 percent. The recent interest rate cut
from the ECB is not expected to have an impact.
As governments wrestle with their respective debt burdens the only certainty is there is no silver bullet.
The knock on effects of the Eurozone crisis
will be felt globally not least by the Chinese keen to kick start their
labouring export sales. China, the world's second largest
economy, has relied heavily on its manufacturing and export sector to key
markets such as the Eurozone to drive its economic growth.
The all pervading sense of nervousness will continue to impact on all business sectors. The days of easy access to finance are long gone. Companies need to focus on cost control and their exposure at every level ranging from inventory levels, rate of stock turn and the integrity of the debtor’s book.
Operating in this current climate of austerity will provide the ultimate challenge for those managing companies, be it an SME or a large multi-national corporation.
No comments:
Post a Comment