As anticipated, 2023 saw a rapid and widespread resurgence in business insolvencies, and 2024 began with insolvency rates surpassing pre-pandemic levels in the majority of advanced economies. Three out of four countries experienced a rebound in business insolvencies in 2023, with many seeing a double-digit rise. Globally, the average increase in business insolvencies accelerated from +23% in 2022 to +29% in 2023, marking the swiftest momentum since 2009 (+33%). However, exceptions were notable in emerging markets, particularly the BRICS, which collectively represent a significant portion of global GDP (30%) and consequently influence our global insolvency index (38%). This tempered the annual rise in our headline indicator. Overall, our global insolvency index rose by +7% year-on-year for the entirety of 2023, compared to +1% in 2022. Western Europe remained a significant contributor to the global upturn despite experiencing a slower recovery (+15% year-on-year), with the Eurozone maintaining stable momentum (+14%). North America also bolstered the global resurgence, particularly with the United States witnessing a substantial surge (+40% year-on-year), while China’s prolonged low insolvency rates offset increases observed in most other Asian countries (Japan, South Korea, Australia, Hong Kong, New Zealand).
Learn more here: https://www.allianz.com/en/economic_research/insights/publications/specials_fmo/2024_02_28_Global-Insolvencies.html
