Economists are predicting a continued upward trend in global insolvencies for 2020 for the fourth consecutive year.
Trade credit insurer, Euler Hermes, suggests that this is a combination of a ‘lower for longer’ economic activity (most notably in advanced
Asia will see the biggest rise in insolvencies at +8%, followed closely by China at +10% and India at +11%. In Western Europe, where economic growth has fallen below the historical threshold and which often results in fewer insolvencies, will see an increase in financial instability and business failures across most of its countries with Germany at 3%, Italy at +4% and Spain +5%. The UK is projected at +3%.
It is predicted that four out of five counties will post a rise in insolvencies in 2020, with Brazil and France
These predictions call for more due diligence into who your business is working with to avoid being part of the collateral damage when a business does fail. Analysts agree that keeping a closer eye on your customer’s stability is key to avoiding risk. An annual subscription to