Global business insolvencies have been rising since 2022 and it appears the trend will continue thanks to high interest rates, economic uncertainty and slower consumer demand.
The Allianz Trade Global Insolvency index surged by +10% in 2024. In 2025 it is set to rise by +6%, followed by +3% in 2026. If increases come to fruition it would mark 5 consecutive years of rising insolvencies.
Some key APAC countries saw business insolvencies surge in 2024 with increases above 20% in Singapore, Australia, New Zealand and Hong Kong with construction, wholesale and service industries among the hardest hit sectors. Elsewhere the US posted a major increase, while the Eurozone saw a noticeable acceleration.
