Overall, we anticipate double-digit growth in bankruptcies across half of the world this year. So far, global business insolvencies have risen by 9%, with the increase being widespread across regions and sectors. Two-thirds of countries are projected to exceed their pre-pandemic insolvency levels, particularly the UK and France. Our Global Insolvency Index is set to climb by 11% in 2024, ending the year 10-15% higher than the 2016-2019 average, though still 11% below the peak during the Great Financial Crisis. This rise is driven by the resolution of a backlog of insolvencies, especially for companies that avoided collapse due to pandemic and energy crisis support measures. The construction, retail, and services sectors have seen the largest increases in business insolvencies, both in frequency (number of companies) and severity (size of companies). In Q2 2024, large insolvencies (companies with over EUR50 million turnover) reached a new record high, led by Western Europe, where the manufacturing sector is only beginning to emerge from an 18-month recession.
Learn more here: https://www.allianz.com/en/economic_research/insights/publications/specials_fmo/241015-global-insolvency-outlook.html
