Corporate insolvencies rise for first time in 10 years

Corporate insolvencies rise for first time in 10 years

Corporate insolvencies are on the rise globally due to the more challenging economic environment and high policy uncertainty. Business failures in developed markets are forecast to increase 2.8% in 2019 – the first annual increase in a decade – followed by another 1.2% increase in 2020. North America is now forecast to see the highest insolvency growth (3.2% in 2019; 1.7% in 2020) as economic momentum wanes and companies increasingly face the costs of rising trade tensions. Western Europe faces a 2.7% increase in insolvencies this year as economic growth decelerates and the manufacturing sector struggles amid lower global trade. Political uncertainty remains a key risk.

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