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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