MILAN, Nov. 3 (Class Editori) - The negative scenario caused by COVID-19 seems to be over, at least for Italian firms in China. 60 percent of companies will record a turnover in 2020 at least equal to that of last year. 40 percent of them even forecast a growth by 5 percent. These esteems are shown by the latest flash survey by the Italian Chamber of Commerce in China, in which about 200 of the 550 associated companies participated. Among the award-winning sectors: digital, automation, industrial components, energy, retail and services drive the growth, while chemicals and household appliances are slowing down.
Virtually, all sectors will experience an improvement in their outlook over the next 6-12 months, especially in terms of China on China sales (56 percent of the positive sample). Exports to Italy and the rest of the world are expected to be stable or worsening (only 12 percent of the sample expects an improvement in sales to Italy).
"The data confirm what our members tell us every day. China has recovered and the Italian companies on-site have done the same. These are very positive results, if we consider the year in which they are achieved and the impact of the pandemic on the global economy, and they should be read in the context of a slightly growing Chinese GDP in 2020," as the President of the Chamber of Commerce, Paolo Bazzoni, has explained.
In the first 9 months, 30 percent of companies improved compared to the same period in 2019; 46 percent of them experienced a decrease in revenues, while 23 percent achieved results in line with the previous year. In general, the fourth quarter is expected to be particularly strong. The order portfolio is now higher than in the previous quarter, according to 30 percent of the interviewed (it was 19 percent in the previous survey). Moreover, the percentage of those with a portfolio at least in line with that of the previous year has also increased (from 40 percent to 44 percent), while the share of companies with a decreasing backlog is lower (from 41 percent to 27 percent).
"The boost on domestic consumption rewards some sectors - as already seen - but, more generally, the choice of the Italian companies that have invested and localized in China has been rewarded," Bozzoni has added. "Today, these investments are also driving the Italian growth, since 70 percent of the members claim to import from Italy and, in one case out of 3, even more than 30 percent of revenues, therefore creating value for parent companies."
(Source: Class Editori)
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