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The outlook for food exports remains positive, with further demand growth from overseas expected, due to the strong reputation of “Made in Italy” food.

Key challenges for food retailers are the increasingly competitive market environment and the very high wage pressure, which is diminishing profit margins.

A hard Brexit remains a major threat to the Irish food sector, despite ongoing efforts of food exporters to diversify shipments away from Britain.

The recent profit margin increase is expected to bottom out in the coming months due to a slowdown in inflation and increasing competition in food retail.

The average payment duration in the food industry is 60 days, and the number of payment delays remained low in 2017, with no increase expected in 2018.

Global economic momentum, which began picking up in H2 of 2016, has solidified through the year. However, now is not a time for complacency.

Overcapacity remains the main challenge, as the rebalancing of the economy from investment and export-driven growth towards private consumption continues.

The steel and metals sector remains resilient for the time being, but the market environment is turning increasingly difficult with more downside risks.

Demand from construction and automotive as key buyer sectors has been robust in 2017, and steel price increases have been pushed through the supply chain.

While in general insolvencies are not expected to rise sharply, an increase in business failures in Puerto Rico and the Houston area cannot be ruled out.