July 22, 2019 11:23 am

2019: number of insolvencies worldwide will rise

For the first time since the outbreak of the economic and financial crisis, the number of insolvencies worldwide will increase again. A current study by the credit insurance company Atradius assumes that the number of company bankruptcies this year will probably increase by two percent compared to the previous year. Western Europe is particularly affected by this development.

Atradius cites the worldwide increase in the debt of many companies since the financial crisis as the reason for the increase. The global situation has recovered somewhat by the middle of the year. Nevertheless, the ongoing trade policy conflicts continue to cloud the economic outlook. This also increases the imponderables for companies.

When comparing world regions, the outlook for Western Europe is particularly poor. The number of insolvencies in these regions is expected to rise by three percent. Both in North America (one percent) and in the Asia-Pacific region (two percent), a less pronounced increase in insolvencies is to be expected. According to Atradius, the reason for the higher increase in Western Europe is the cooling economy – caused by a worsening demand for exports. Cash

This post was written by Jens Secker

(Image rights: istockphoto.com/McKevin)

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