IP Australia: The Future of Intellectual Property in Australia

The Australian Intellectual Property system is ranked in the top five systems globally.

Intellectual property remains an issue of national significance as Australia gears up to take its place in the ‘Asian Century’. Data shows the Australian intellectual property system is robust – as a nation our intellectual property system routinely ranks in the top five systems globally.

But our level of investment in intangible assets, which includes intellectual property, is far behind that of our tangible assets – things like roads, mines and buildings. In addition, although our innovation inputs - for instance patent filings - are high, our outputs and record when it comes to commercialising innovative activity could be better.

So what can we do to better support innovation and intellectual property in Australia? This was the central question that framed discussion at IP Australia’s recent IP Forum in Sydney.

Keynote speaker Christine Emmanuel, executive manager, intellectual property and licensing, CSIRO Operations, believes as a nation we could be better at talking about the value of innovation.

“We don’t have a good way of communicating value, as well as no way of talking about innovation in the language of the government.”

According to Emmanuel, this inability to adequately communicate around innovation is a problem when it comes to attracting investors to innovative projects, which is a reason why innovative businesses find it challenging to attract venture capital.

But importantly, as we resolve this and nurture our intellectual property system, we need to make sure we don’t give too much away.

“We need to have our scientists think about the value of innovation for our economy and our country. Scientists need to understand the value of their work from a commercial perspective. We seem to think scientists must have integrity and not bow to commercial pressures, but that’s nonsense. Both science and commerce should be going in the same direction. We need to teach our scientists to work on problems that will create value.”

Another keynote speaker, Scott Bouvier, a partner with law firm King Wood and Mallesons, suggests to generate better business outcomes from the innovation process, intellectual property advisers need to become better business advisers.

“Advisers need to broaden their role so that they understand the commercial context and to develop intellectual property within that context. Intellectual property advisers also need to be working with clients on commercialisation strategies,” Bouvier argues.

Nevertheless, another keynote presenter, Christine McDaniel, deputy chief economist, IP Australia, says we should not take for granted that our intellectual property system is well-functioning. The fact it’s possible to obtain high quality patents, which can be opposed and defended, within a transparent intellectual property system is a situation to which many countries aspire.

As to how or even whether our intellectual property system needs to be improved, McDaniel says “it’s a reasonable goal just to maintain the system.”

So what’s the place of government in encouraging investment in innovative activities? According to McDaniel, governments have a role in helping new, innovative firms enter the market, as well as in promoting innovation in existing firms.

Public sector involvement in innovation can take a number of forms – it can include support of ongoing research and development, acquisition of external knowledge through activities such as buying patents, as well as encouraging new business processes and new ways of organising people.

McDaniel says according to OECD figures, the Australian government is already a strong supporter of innovation. Data suggests sixty per cent of large firms receive support for innovation and twenty per cent of small firms receive government support to be innovative.

“But the question is whether we’re doing it the right way – how do we know whether we’re giving financial support to the right firms? It’s very hard to pick winners,” she states.

According to McDaniel, a new way of approaching this challenge is for governments to invest in performance-based innovation. So the idea is that if an innovative firm receives government funding, if it can demonstrate it is performing, it will qualify for further government support.

“But the challenge is how to measure performance – this is the big question,” says McDaniel.

She says there is also a role for governments in providing opportunities for innovative firms to be networked through trade shows, to assist in the collaborative process.

“Governments can help create the circumstances for firms to collaborate, but ultimately collaboration happens at the individual firm level.”

Emmanuel says as a nation we’re actually good at collaborating. “We do that well and to innovate you have to collaborate – no-one can innovate in a silo. Scientists are always sharing information at conferences and sharing information across universities, as well as travelling overseas to collaborate. So we’re seeing that activity – it’s just whether this translates into value.”

Bouvier says the intellectual property sector must work from more of a position in which intellectual property portfolios are created with the purpose of attracting investment.

“We need to understand investors’ drivers and look for collaboration based on intellectual property. By doing that we will be able to improve the services we provide to the sector and also improve innovative outcomes. Businesses need a mix of skills to be able to translate innovation into commercial results and advisers need the right skills to assist in this process.”

Fundamentally, says Bouvier, intellectual property needs to be properly structured so investors can securely invest. “Poor decisions about the way intellectual property is structured are very hard to undo and investment deals can die just on the terms of licenses.”

“We have undertaken the right steps to reform the industry. Our IP system is highly regarded. We have the right framework and what we need to do now is work more effectively within it,” he says.

For more information about IP Australia, please visit their website.

Atradius Payment Practices Barometer Eastern Europe

Atradius International survey of B2B payment behaviour - June 2013

Eastern Europe is heavily influenced by the weak economic conditions in the Eurozone. In particular, countries like Poland, Czech Republic, Slovakia and Hungary, which are nearer to the borders of the Eurozone, are affected by the continued financial constraints experienced by their neighbouring economies, which also puts pressure on their cash flow levels. The increase in long overdue receivables is also contributing to the increase in the value of receivables write offs reported by Eastern European respondents.

Core results:

•  29.4% and 21.6% of the total value of the invoices issued by Eastern European respondents to their domestic and foreign B2B customers respectively are overdue
•  B2B invoices in Eastern Europe are more likely to be paid late due to liquidity constraints of domestic (79.6% of respondents) than of foreign customers (53.2%)
• Uncollectable B2B receivables increased markedly over the past year, particularly in relation to export trade
• Around 45% of the respondents in Eastern Europe become concerned when average DSO is 46 days to over 90 days longer than the average credit period extended to B2B customers
• The majority of Eastern European respondents consider falling demand of products and services and maintaining adequate cash flow to be the biggest challenges to the profitability of their businesses this year

To view the full report, please click here.

For further information:
Atradius Credit Insurance N.V.
5/22 Pitt Street
Sydney NSW 2000
Phone: +61 (0)2 9201 2389 
Fax: +61 (0)2 9201 5224  
Website: www.atradius.com 

Messaging to Multicultural Australia

Author: Tea C. Dietterich 
Director of 2M Language Services
2m.com.au
Ph: +61 7 3367 8722
E: multimedia@2m.com.au




One in four Australians were born overseas, and there are more than 22 million people in our country who all contribute different ideas, religions, languages and customs. The diversity of these people makes Australia a unique place to live and creates multiple and versatile markets for our products and services.

I often talk about international marketing and how to reach your global markets. But we should not forget that LOTE (Languages other than English) speakers have strong purchasing and decision power in Australia, too, and any business would want to get the right messages across to them.

Nelson Mandela said: “If you speak to a man in a language he understands – it goes to his head. If you speak to him in his own language – it goes to his heart.” 

The same applies for our multicultural Australian audience. Although the majority do speak English, it is ideal to talk directly to your customers in their own language.

Whether you are a private or public institution – the aim is to get the right message across to your key audience.

Here are some basic facts on Australia's diversity:

• Since 1945, more than seven million migrants have made Australia their home.
• Around 45 percent of Australians were born overseas or have at least one parent who was born overseas.
• People from more than 200 countries make up the Australian community.
• The top ten countries of birth in Australia are: Australia, the U.K., New Zealand, China, India, Italy, Vietnam, Philippines, South Africa and Malaysia.
• Australians practice more than 100 religions including Christianity, Buddhism, Hinduism, Islam and Judaism.
• More than 300 languages are spoken in Australian homes; the most common apart from English are Mandarin, Italian, Arabic, Cantonese, Greek, Vietnamese, Tagalog/Filipino, Spanish and Hindi.

The changing mix of origins of Australians is always a topic of interest in every Census. We often quote the above statistic that a quarter of the population was born overseas. That figure hasn’t changed much over the years; however what has changed is how that quarter is made up. See details in the below migration chart which shows that the largest increase has come from India and China.

 

Translating for multicultural Australia
When you are translating for multicultural Australia, you are reaching out to Culturally and Linguistically Diverse (CALD) Communities. But before you begin, it is imperative to identify your readership.

Are you a City Council with information for retirees? A Health Department with a brochure for mentally ill? An Internet Service Provider with a website for all age groups? A manufacturer with a product suitable for the Asian Australians? The answers to these questions will help you to frame your messaging and your tone.

How long have they been here?
One example segment could be Italians who have lived in Australia for 50 years. Their terminology and key word usage is very different to Italians in their native country. Their home is Australia, and they are Australian – so, your messaging cannot be compared to what it would be if you were addressing their compatriots in their birth country. A competent translator in the origin country might do an outstanding job translating the text, but will still not give the right message to the Australian multicultural reader, because it is not using their language. Locally known keywords, names or government programs will often stay in English, because that is how they are known - whereas for overseas markets, the translation approach would differ.

What is their age group?
Closely related to above point, the age group will determine the type of language to be used. Tone of language has to be adjusted. This applies to translation in general and is particularly important, as the language of older migrants may not have evolved naturally due to their distance from their birth country.

What is there education level? 
The tone of the translation should be dependent on your target audience, whether it is plain and simple, sophisticated or somewhere in between. The demography and geography of your target audience should also be noted. Convoluted sentences that are often found in lengthy government documents may be a challenge. Essential messages should be portrayed in the right terms for the audience, so that they completely understand.

Consider their health
CALD communities are an important target audience for health departments in government levels as well as for health device manufacturers. The language to be used will differ considerably here as well, depending on the target group. For example, is your health brochure for the mentally ill, or directed at people prone to sports injuries, or at the wide variety of CALD public groups?

What should be left in English?
Often, the question of where and when to use English in key phrases, is a matter of personal preference. For this reason, it is important to establish a style guide from the beginning to determine which terms are left in English and which are to be translated or explained. This can differ from language to language. In German for example, English terms are frequently used and accepted without an explanation. This is contrary to Arabic, where often everything will be translated, numbering included.

However, it is important to note that it is logical to leave the English words in for many instances. This is so the LOTE speaker knows which words to use when they come across that situation in their Australian daily life. It applies in everything from health programs to transport options and everything in between.

Language specific differences
There can also be many subtle differences within a language group. Just to name one example: Serbian can be written in Latin (Roman) or Cyrillic script. Which one should you use?

This proves that you need to check your target audience closely and don’t assume anything.

As you can see, there are many differentiators when translating for CALD communities, and this also includes the design aspect (i.e. which images and symbols to use). It is important to remember that Australia contains a very large multicultural audience that needs to be communicated with in the right way.

In return, we can harness this vital part of our community to share information and knowledge, and to market our products and services.

The European Union’s new Cosmetics Regulation (EC 1223/2009)

On 11 July 2013, the European Union’s new Cosmetics Regulation (EC 1223/2009) will replace their existing Cosmetics Directive (76/768/EEC).  This new rule will now apply to all EU member states.  The following points outline the upcoming changes to regulation and how to comply with the measures when exporting cosmetics to EU markets.

1. Product classification

EU law defines a cosmetic product as, “any substance or preparation intended to be placed in contact with the various external parts of the human body or with the teeth and the mucous membranes of the oral cavity, with a view exclusively or mainly to cleaning them, perfuming them, changing their appearance, and/or correcting body odors, and/or protecting them or keeping them in good condition.”

For more on product classification, refer to the Manual on the Scope of Application of the Cosmetics Directive: http://ec.europa.eu/consumers/sectors/cosmetics/files/doc/manual_borderlines_version50_ en.pdf

2. Ingredient legality

The new Cosmetics Regulation lays out restrictions for special ingredients through a set of Annexes:

•  Annex II: substances prohibited in cosmetic products
• Annex III: substances subject to conditions and limitations
• Annex IV: permitted colorants
•  Annex V: permitted preservatives
• Annex VI: permitted UV filters

Review the restrictions here: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CONSLEG:1976L0768:20100301:en:PDF

3. Product Information File (PIF)

The PIF is required for each product and discloses evidence of compliance to the Competent Authorities for their inspections.

The UK’s guidance document outlines how to prepare a dossier and safety assessment.  While it is not binding for other countries, pages 25-31 offer a good indication for a general template: http://www.bis.gov.uk/assets/biscore/consumer-issues/docs/guide-to-cpsr.pdf

Also, under the new Cosmetics Regulation, all safety information must be combined in a cosmetics safety report (CPSR).  Each product must have one as part of its PIF.  Refer to Annex I, page 21: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2009:342:0059:0209:en:PDF

4. Responsible Person

Only products with a designated Responsible Person can appear on the EU market.  The Responsible Person must serve as the primary contact for product compliance and ensure its legal status by maintaining the PIF and safety assessment.  Their name and contact info will appear on the product label.

Usually, the Responsible Person is the EU manufacturer, distributor, or importer.

The consultants on this webpage provide “Responsible Person” services: http://export.gov/europeanunion/accessingeumarketsinkeyindustrysectors/eg_eu_044318.asp

5. Labeling

Both the container and packaging must clearly display the following information:

• EU address.  The name and address of the Responsible Person as well as where the PIF can be found.
• Nominal content.  Metric weight or volume at the time of packaging.
• Durability.  Expiration date information based on the nature of the product.

o   For products with shelf lives over 30 months, an “open jar” represents the maximum “period after opening,” and the figure below it (e.g. 6 months) is the product’s durability after it has been opened.

o   For products with shelf lives under 30 months, the “hour glass” accompanies the date of expiration.  The date must indicate the month and year or the day, month, and year, in that order.

•  Precautions for use.  
• Warnings and conditions.
• Batch number.
• Product use.
• List of ingredients.  List in order of descending weight at the time added to the product.  Use the nomenclature in the International Nomenclature of Cosmetics Ingredients.  Europe’s naming conventions can be found here: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2006:097:0001:0528:EN:PDF 
• Nanomaterials.  Indicate the presence of nanomaterials with nano in brackets after the ingredient.
• Country of origin.

Label information must appear in the national or official language of the Member State where the product is sold.  However, the ingredients listing must still use International Nomenclature names.

For small packages, consider using a leaflet or card with the product’s labeling information.  The container and packaging must reference the leaflet or card with the “open book” symbol.  This exemption only applies to warnings, ingredients, and product use information; everything else must appear on the container and packaging.

6. Notification of authorities

Cosmetics do not require the CE mark used for EU products, but notification must still be given to the proper authority.  Products require notification before sale through the cosmetics products notification portal (CPNP).

The CPNP electronic system will replace the current mechanisms for notifying Competent Authorities and poison control centres.  Notification by the designated Responsible Person will become mandatory in July 2013. 

Products already notified at the national level prior to July 2013 must be re-notified to the CPNP.

7. Product claims

The EU has no precise guidelines for product claims (i.e. “organic,” “natural”).  They have a general good-faith requirement that, “labeling, marketing, and advertising of cosmetics products, texts, names, trademarks, pictures and figurative or other signs cannot be used to imply that these products have characteristics or functions which they do not have.”

If a product makes any such claim, the PIF must have information to support that claim.

8. Animal testing

The EU has prohibited animal testing since 2009.  An exception was made until 11 March 2013, but only for products tested for repeated-dose toxicity, reproductive toxicity, and toxicokinetics.

9. Marketing and sales

The EU has rules for internet marketing, internet sales, and direct sales:

• Internet marketing.  The e-commerce Directive (2000/31/EC) imposes business requirements explained here: http://ec.europa.eu/internal_market/e-commerce/index_en.htm
• Internet sales.  The Directive on Distance Selling to Consumers (97/7/EC, amendments) creates obligations for internet venders.  See http://ec.europa.eu/consumers/cons_int/safe_shop/dist_sell/index_en.htm and http://ec.europa.eu/consumers/rights/gen_rights_en.htm
• Direct sales.  Specific rules apply for sales involving unsolicited visits.  See the Directive on consumer protections in contracts negotiated off business premises (85/577/EEC): http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:1985:372:0031:0033:EN:PDF

10. Trademark protection

To register a product trademark, apply online through the Office for Harmonization in the International Market (OHIM).  For more information on European trademarks: http://oami.europa.eu/ows/rw/pages/CTM/regProcess/regProcess.en.do

More Information

This summary is based on information provided by the U.S. Commercial Service in “Steps to Exporting Cosmetics Products to the European Union,” May 2012.  The U.S. Department of Commerce does not claim responsibility for actions taken by readers in response to this information and recommends that readers conduct their own due diligence before entering into business ventures.  Email them at Office.BrusselsEC@trade.gov

More information for U.S. suppliers: http://export.gov/europeanunion/accessingeumarketsinkeyindustrysectors/eg_eu_044318.asp

Cosmetics Regulation (1223/2009): http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2009:342:0059:0209:en:PDF

European Commission website on cosmetics safety: http://ec.europa.eu/consumers/sectors/cosmetics/index_en.htm

Japan Market Update

Snapshot:

Population: 27.9 million
Nominal GDP: US$5.8 trillion
Nominal GDP p/c: US$45,920 (2011)
GDP Growth: -0.6% (2011); 2% (2012)
Exchange rate: AU $1 = 90.79 Yen (June 2013)
Major industries: Automobiles, consumer electronics, computers, refined petroleum and civil engineering equipment and parts
Exports to Japan: AU $ 53.1 billion (2011-2012)
Imports from Japan: AU $22.5 billion (2011-2012)

Bilateral Trade Relationship

Japan is the third largest economy in the world in terms of GDP and is characterised by a democratic, constitutional monarchy, respect for the rule of law and commitment to regional security. Japan’s large population and significant number of wealthy, highly educated citizens, makes it one of the world’s largest consumer markets in the world.

Australia and Japan share a strong bilateral relationship which is built on mutual interests, especially in the area of trade. Japan is Australia’s second largest export market. In 2011-2012 exports to Japan were valued at $53.1 billion or 16.8 per cent of Australia’s total exports. Japan sits behind the USA and the UK as Australia’s third largest foreign investor, with investments in 2011 totaling roughly $123.4 billion, of which over 40% was foreign direct investment.

In terms of merchandise trade, Australia’s key exports to Japan are coal, iron ore and concentrates, beef and copper ores and concentrates. In services, personal travel (excluding education) and transport contribute the largest amount in export value. Japan’s key imports into Australia are passenger and goods vehicles, refined petroleum and civil engineering equipment and parts.

Trade Agreements

A Free Trade Agreement (FTA) between Australia and Japan has been under negotiation since 2007. The last formal negotiating round was held from 13-15 June 2012 in Tokyo. However, significant progress has been made since that time and the finalisation of the agreement is said to be imminent.

Two key benefits of the FTA would be reduced tariff and non-tariff barriers to trade and expanded export opportunities for trade in the agricultural sector which is currently quite regulated.

In April 2013 the members of the Trans-Pacific Partnership (TPP) formally invited Japan to join negotiations. Japan will join Australia and 10 other nations already in talks on the TPP: the United States, Canada, Mexico, Peru, Chile, Vietnam, Malaysia, Singapore, Brunei and New Zealand. A deal is hoped to be reached by the end of 2013.

Japan and Australia also sit on a number of regional forums including APEC and ASEAN.

Economic Outlook

There are three key factors that could impact on Japan’s economic outlook moving forward. These include:

• The impact of the 2011 earthquake and tsunami which severely affected Japan’s global supply chains and has left the country with power shortages. Nuclear power constituted 30% of the total energy supply.
• Japan has an ageing population. By 2050, the population is expected to fall by 20 million from where it stands currently at 127 million. With fewer tax payers to fund the increase in expenses associated with an aging population, the government will be forced to increase taxes.
• The weak global economy is hampering the recovery of the Japanese economy following the devastating 2011 natural disasters. 

The Government is expected to continue with monetary easing in an attempt to stimulate the economy, and have increased their target inflation rate to 2 per cent. On a positive note, the weakening Yen is increasing competitiveness and analysts expect the strengthening of global markets, coupled with resilient domestic demand, will enable Japan to emerge from recession by mid-2013. Nevertheless, the future remains uncertain as the country faces an ongoing battle with deflation.

Doing business in Japan

The Japanese are very polite, and business etiquette is extremely important. Politeness, sensitivity and good manners are the pillars of Japanese business etiquette. When doing business in Japan, also take note of the following:

• Business cards should be printed with English on one side and Japanese on the other. It is not so important to have you address translated, more so you name and company name. Carry at least 100 cards for a one week business trip. Present your business cards with two hands and with the Japanese side facing upwards to the most senior member of the Japanese party first, bowing slightly as you do so. NEVER write notes on a Japanese business card, treat them with respect and store them away only after the meeting closes.

• English is not widely spoken in the business world so an interpreter is normally required 
• Japanese business attire is formal. Men should wear blue or black suits, a white shirt and subdued tie. Women should be conservatively well dressed, wearing either trousers or a longer skirt suit.
• When it comes to attending business meetings, be sure to arrive at least 5 minutes early and call ahead if you are running late. Wait to be seated. It looks good to take a lot of notes during the meeting at it shows your interest in the matter.
• Do not shake your hosts hand when first meeting as the Japanese seldom shake hands. Be pleasant and do not speak derogatorily about anyone, even competitors, be willing to learn and ask lots of questions (just not about their personal life).

Opportunities for Australian Exporters

Prominent sectors including energy, education, food and agribusiness, have been identified as export growth markets. However, for Australian exporters, the focus should be on higher value-added and knowledge intensive sectors such as the life sciences, information technology, nanotechnology, aerospace and environmental technologies. These sectors are seen to offer the most promising prospects for exports growth to Japan.

• Opportunities in niche markets for exporters also exist in the following areas: 
  
• biotechnology and nanotechnology
• building materials and products
• bloodstock and equine industry
• creative industries including architectural design and arts
• clean technology and renewable energy
• education and training
• food and agribusiness
• health and lifestyle products and services
• mining
• energy infrastructure
• finance and investment.

Tariffs and Taxes

Japan has low or zero tariffs on most industrial products but maintains tariffs and restrictions on some agricultural items. Australian products enter the country at the lowest rate notified, with the exception of preferential rates, with a ‘self-assessment’ system designed to accelerate customs clearance allowing prior calculation of duty by importers.

36th-Parallel Geopolitics & Strategic Assessments: Asia Pacific/Latin America Strategic Architecture Assessment Part 1

Executive Summary

The South Pacific is rapidly becoming an area of economic and political importance. Spanning the waters from the equator to the Southern Ocean between the West Coast of South America and the East Coast of Australia, Papua New Guinea and Indonesia, the region is characterized by great travel distances, a broad range of nation-states, a maritime orientation and previously inaccessible resources. During the last thirty years technological, economic and political change has seen the region emerge as a strategic arena in its own right, with both resident and extra-regional actors now vying for influence and wealth. In this two-part assessment 36th Parallel outlines the major features of the strategic architecture underpinning this evolution.

Part One: Introduction and Overview.  

Until the late 20th century the strategic importance of the South Pacific was only apparent during wartime. With the revolution in transportation, telecommunication, services, production and exchange that swept the world economy over the last three decades, the South Pacific has increasingly become a region of major economic importance. This includes the sea lines of communication that connect Asia to Australia, New Zealand and the West Coast of South America, as well as the increasingly exploitable natural resources above and below water in Melanesian and Polynesian island states, the open waters between them, as well as along the Eastern and Western South Pacific Rims. With trade and production trend forecasts predicting continued growth in Australasian-South American commerce, the region has assumed previously unknown prominence.

The three main legs of South Pacific strategic architecture are Trade, Politics/Diplomacy and Security.  Although intertwined and overlapped, they can be analytically distinguished from each other. These “pillars” span three distinct sub-regions: the Southeastern Pacific, which extends westwards 2500 kilometers from the South American coast line from the Equator to Chilean Patagonia; the South-central Pacific, which occupies 3000 kilometers of mostly open water between the Equator and the Southern Ocean west of Easter Island to Fiji and Rarotonga; and the Southwestern Pacific, which covers the 2000 kilometers of water and land masses extending from Australia, Indonesia and Papua New Guinea to Fiji and the Cook
Islands (distances approximate).

The pillars of the architecture can be respectively sub-divided into Production, Commerceand Services,  (with regard to trade), regime type and stability, local political culture and foreign relations (with regards to politics and diplomacy); and enforcement authority and armed force (with regard to security).

To continue reading this report please click here.

Atradius: May Economic Outlook 2013 - Asia-Pacific Focus

Sydney, Australia 4 June 2013 – Atradius has released the Economic Outlook for May 2013. It follows from last November’s Economic Outlook which argued that we had possibly moved away from the abyss of another economic crisis. In our latest edition we have found that this is not necessarily the case.

The global economic environment has weakened over the past 6 months and we expect only modest economic growth in 2013. 2012 ended with just 2.6% global growth and a 0.5% contraction in the Eurozone. Global growth is projected to improve at the end of the year due to a better economic performance in the United States and stabilisation of the Eurozone economy. However, there is a high risk that economic growth will be even slower than pictured in this outlook.

Global growth is expected to stabilise and reach 2.6% in 2013, more or less the same rate as last year, as growth in advanced markets remains sluggish and emerging markets continue their strong performance. The global economy is forecast to gain speed at the end of the year and improve in 2014 to 3.2%. Emerging markets remain the driving force of global growth. Asia, excluding Japan, is expected to grow 6.6% this year, largely thanks to China, whose growth is projected to reach 8.2%. Asia remains the driving force of the world economy. With economic growth in Asia buoyant again, Latin America’s economic environment will receive a boost this year as the continent is an important supplier of commodities, industrial products and goods to Asian markets. Recent economic developments in Brazil have not been as positive as expected at the end of 2012, when a mild recovery to fuel a broad-based domestic upswing in 2013 was anticipated.

The weak global outlook is consistent with a stabilisation of the insolvency environment in many markets, with the aggregate insolvency frequency even improving marginally in 2013. The Eurozone shows a moderate increase in the already high level of insolvencies, while the Eurozone periphery will see a more significant increase. Conditions improve in the Asia-Pacific region and the United States because of their relatively better economic conditions. Applying our insolvency assessment framework (page 34), we expect the number of insolvencies to remain more or less stable across major markets in 2013. The insolvency environment continues to improve in the Asia-Pacific region, with Japan and New Zealand seeing insolvencies drop by 2% and 3% respectively. The insolvency matrix for 2013 indicates the insolvency situation for Australia as average but also still deteriorating with an expected insolvency growth of 3% in 2013. While the overall insolvency environment stabilises, we forecast rising insolvencies in 10 out of the 22 markets that we track. Eurozone countries in particular will see a further increase due to the ongoing weak economic conditions. In general terms, credit risk is elevated and will remain so throughout the forecast horizon.

Looking at the macroeconomic headline forecasts figures for Australia, the GDP growth is expected to decrease from 3.6% in 2012 to 2.5% in 2013. It is forecasted to increase to 2.9% in 2014. Inflation is expected to remain the same for 2014 at 2.5% as it was in 2013, and increase to 1.8% in 2012. The export growth for Australia in 2012 was 6.3%, decreasing to 4.8%, with a further decrease forecast to 2.7% in 2014.

For New Zealand, GDP growth is expected to decrease from 3% in 2012, to 2.7% in 2013, forecasted to then increase to 2.8% in 2014. Inflation is expected to increase from 1.1% in 2012 to 1.4% in 2013 with an additional increase to 2.3% expected in 2014. Export growth is expected to increase from 2.1% in 2012 to 2.6% and then decrease to 1.5% in 2014.

In terms of emerging markets the Asia Pacific (excluding Japan), is expecting a decrease in GDP growth from 6.7% in 2012 to 5.8% in 2013. It is forecasted to increase to 6.2% in 2014. Inflation is also expected to decrease from 5.6% in 2012 to 3.7% in 2013 and further decrease to 3.6% in 2014. Export growth is expected to decrease significantly from 8.9% in 2012 to 2.9% in 2013, and then increase to 4.9% in 2014.

For the full Economic Outlook report for May 2013 please click here.

About Atradius
The Atradius Group, a company of Grupo Catalana Occidente S.A., protects businesses against trade credit risks throughout the world with credit insurance, bonding, and collections services offered in 45 countries. With total revenue of EUR 1,554 million and a market share of approximately 31% of the global trade credit insurance market, Atradius’ products contribute to the growth of companies throughout the world by protecting them from the payment risks associated with selling products and services on credit. With 160 offices, Atradius has access to credit information on more than 100 million companies worldwide and makes around twenty thousand trade credit limit decisions daily.

Atradius Credit Insurance N.V. 

Level 5, 22 Pitt Street

Sydney NSW 2000

Ph: +61 (0) 2 9201 5222

E: info.au@atradius.com

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