Coface Group, a global leading company offering credit rating and credit management services, released the result of its world country-risk survey in Shanghai on May 12. The global economy showed a slight slowdown for the first quarter but still enjoys a positive expectation for the whole year. It keeps China's trade risk at a positive A3 level.

Coface expects China to be the focus of the global economic activity and growth while Europe will see weakening competitiveness. It recognizes the robust rise of the Chinese economy over the years and its tremendous potential for further growth including its aggressive and consistent restructuring after its WTO membership, its booming and competitive export, high saving-investment ratio, and low labor costs.

However, Coface Rating also highlighted the importance of the improvement of China's banking system and corporate governance. It warned against trade risks brought about by the varied financial performance of emerging private companies which power the country's economic take-off.

Coface has found the world country-risk index has kept stable at a weak level. In the first quarter of 2005, most economies benefited from the robust demand on the North American and Chinese market. That contrasts with the notable slowdown last year and recent mediocre performance of some European economies.

Coface thinks the risk rating result was largely a result of the oil price inflation and weak dollar in the first quarter. But it believes that businesses are financially healthy enough to repay their debts. And the continual brisk demard globally has partly offset the negative factor of high production costs. Therefore, it is optimistic to the corporate debts repayment within the year.

By People's Daily Online