COFACE conference: invaluable information for Monaco companies

The Monaco Economic Board (MEB), Banque Populaire Méditerranée and Gramaglia Assurances joined forces for the Country Risk: analysis and opportunities for business conference held on 26 February at the Salon Bellevue in the Café de Paris. Around 80 entrepreneurs from Monaco were there to hear COFACE Chief Economist Julien Marcilly discuss trends shaping the world’s economy and their impact on business as viewed by this global leader in credit insurance.

In his opening remarks, MEB Chairman Michel Dotta drew attention to two COFACE tools that benefit business leaders who are operating in foreign markets: the annual Country Risk conference held in Paris, which for the 21st edition this year drew over a thousand people, and its ‘Country Risk Guide’ published every year.

Delegates in Monaco heard the conclusions of the most recent conference and received a copy of the ‘Country Risk Guide’.

In its 2017 forecast, COFACE was upbeat about what was described as a “fairly favourable global economic situation” with growth up slightly (+2.7% against +2.5% in 2016), and for the first time in two years there were more reclassifications than downgrades of countries.

The fact is that the more time passes the less impact political shocks have on financial markets. So will this happen for example in Europe where political and economic uncertainty is at an all-time high?

At this point in time, COFACE sees a positive trend in investments, but as political risk indicators are very present this growth could fall in the event of a major shock.

Of course, delegates were particularly interested in the country risk assessment and Julien Marcilly made sure he covered destinations that are the target of future MEB business trips. For example, the indicators are green for Slovakia which is benefiting from a robust financial system, and green also for Israel with its highly skilled workforce and hi-tech industries. As for Mexico, whose exports are so dependent on the USA, it is bound to be affected by the new regime. Nevertheless, the country remains an attractive destination because of its proximity to the north American market.

Not surprisingly, questions from the floor focused on delegates’ export regions. A reminder that most Monaco businesses are international. The wholesale sector alone accounts for 9.6% of the Principality’s GDP.

Watch the full video of the conference here > https://www.meb.mc/en/movies