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BUSINESS NEWS: Difficult situation for large corporations from the industry

The serious problems encountered by all markets in the European Union (which officially entered recession) are much more complex than they initially seemed and have already diverted the recovery trend on which the world economy placed after 2009. The new wave of recession, first described by the analysts solely through the terms of the sovereign debt crisis of several EU member states, manifests in fact through the so-called structural crisis in many developed countries from the Eurozone, which - because they fail to become competitive in comparison with some emerging countries - lack the necessary impetus to initiate an upward economic trend on a sustainable basis. Even if they have tried to increase the rate of international exposure, most corporate managers from the window industry are confronted with the fact that, precisely in such periods when the depression cannot be avoided, massive losses can be recorded even by companies that have applied correctly the measures of prevention and difficulties overcoming. In such circumstances, it is not surprising that the main multinational groups involved in the window industry are affected by the economic difficulties from throughout the European Union. Investors - especially on financial and construction markets - are extremely attentive to everything that pertains to risk management - and, more recently, business sustainability, knowing that the economic recovery in every country and, therefore, the resolving of structural problems are issues which depend on a number of internal and external factors. It is interestingly that, although the overall macroeconomic situation remains, broadly speaking, relatively positive, in the actual context it is difficult to identify a real support for sustainable business expansion. Thus, while interest rates for institutional or household consumption loans are relatively low at global level, various restrictions apply effectively to the lending process due to lower purchasing power and new austerity measures, while the degree of demand on the main export markets starts to be relatively poor and cannot boost real growth. In this context, and because of other, the active corporations on the joinery market continue to report mixed results, marked by net or operational losses. For further information and a detailed analysis of the current Fereastra issue click here!
 
 

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