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A deterioration of trade relations with China could negatively affect the ICT component supply side and confront US end-consumers with higher sales prices.

Despite increasing challenges a recovery of the exchange rate and a rather stable economic outlook for 2018 should help the ICT industry in the short-term.

While many Japanese ICT businesses are highly indebted, companies obtain finance easily as banks are very willing to lend and interest rates are low.

Despite continued sales growth, most German ICT businesses operate on very tight margins due to fierce competition and price erosion in most subsectors.

Payment experience over the past two years has been good in the ICT sector and the level of insolvencies is low, with no major change expected in 2018.

Despite overall growth, many French ICT companies face structurally low margins, price pressure and an on-going consolidation process in the market.

While Dutch ICT distributors are becoming larger, many smaller companies are changing their business model to have a more service-oriented approach.

Despite robust growth rates, pricing pressure and cheap imports are key challenges in the domestic ICT market, especially for smaller IT distributors.

Due to limited organic growth opportunities and the on-going economic uncertainty, market players strive to expand through acquisitions and specialisation.

Despite signs of stabilisation since H2 of 2017 the ICT sector remains fragile, with businesses’ profit margins expected to shrink further in 2018.