Allianz Trade’s latest economic outlook forecasts a 7% rise in global insolvencies in 2025, with the United States expected to see a more pronounced 16% increase. Given the close economic relationship between Canada and the U.S., this poses a significant risk for Canadian exporters and suppliers.
Compounding the challenge is a broader global economic slowdown. Allianz Trade projects global GDP growth to slow to just 2.3% in 2025—the weakest pace since the pandemic. In response to rising financial risks, banks are increasing provisions for bad debts, which is tightening credit conditions and lengthening payment cycles.
According to RIAC member David Dienesch, CEO of Allianz Trade in North America, more Canadian businesses are using trade credit insurance to protect their transactions as economic and geopolitical uncertainty keeps growing. The company has seen its new business premium increase 20% year over year.
