• About
  • Subscribe
  • Contact
Wednesday, April 30, 2025
    Login
FutureCFO
  • Business Insights
    • Competencies and Capabilities
    • Digital Transformation
    • Leadership and Roles
    • Mergers and Acquisitions
    • Risk and Regulation
    • Strategies and Tactics
  • Operations
    • Audit and Compliance
    • Finance Accounting and Reporting
    • Operational Accounting and Control
    • Tax Management and Optimization
    • Treasury and Cash Management
  • Technology
    • Artificial Intelligence
    • Automation
    • Big Data
    • Blockchain
    • Business Applications
    • Cloud, Platforms and Ecosystems
    • Future Technology
  • Resources
    • Whitepapers
    • PodChats
    • Videos
  • Events
  • Awards
  • Knowledge Hub
    • Sustainable Finance
No Result
View All Result
  • Business Insights
    • Competencies and Capabilities
    • Digital Transformation
    • Leadership and Roles
    • Mergers and Acquisitions
    • Risk and Regulation
    • Strategies and Tactics
  • Operations
    • Audit and Compliance
    • Finance Accounting and Reporting
    • Operational Accounting and Control
    • Tax Management and Optimization
    • Treasury and Cash Management
  • Technology
    • Artificial Intelligence
    • Automation
    • Big Data
    • Blockchain
    • Business Applications
    • Cloud, Platforms and Ecosystems
    • Future Technology
  • Resources
    • Whitepapers
    • PodChats
    • Videos
  • Events
  • Awards
  • Knowledge Hub
    • Sustainable Finance
No Result
View All Result
FutureCFO
No Result
View All Result
Home Business Insights

Insolvencies in Asia Pacific to hike by 5% next year

FutureCFO Editors by FutureCFO Editors
April 13, 2023
insolvency

Image by kalhh on Pixabay

Insolvencies in Asia Pacific are set to hike by 12% and 5% this year and next, said Allianz Trade recently.

According to the firm, China succeeded in keeping the official number of business insolvencies under control in 2022 (-13% y/y to 7,530 cases) despite a challenging year with multiple lockdowns and a large number of major failures. 

However, business insolvencies in Asia Pacific should see a moderate increase over the next two years (+4% in 2023 and +5% in 2024) as the reopening has not erased all risks, notably in the real estate and construction sectors, the firm said. 

The other countries in the region should also see more insolvencies due to the downside factors affecting the region (eg elevated interest rates and inflation), notably 
Australia (+15% in 2023 after +45% in 2022), Japan (+12% in 2023 after +7% in 2022) and India (+36% in 2023 after +50% in 2022 due to the catch-up from the long suspension of courts), the firm added. 

Global insolvencies
In addition, global insolvencies are set to rise by 21% in 2023 and 4% in 2024, the trade credit insurer pointed out.

Half of the countries are likely to exceed their pre-pandemic levels of insolvencies in 2023 while Allianz Trade’s Global Insolvency Index is set to continue rising in the next couple of years, the firm predicted. 

Yet, this significant jump might not be sufficient for insolvencies to reach their 2019 levels, the firm said.

According to Allianz Trade, global business insolvencies might stay -5% below their pre-pandemic levels in 2023 and -1% in 2024.

This global trend masks significant local differences, the firm said. 

Allianz Trade forecasts that half of the countries in its panel are likely to see insolvencies exceed their pre-pandemic levels in 2023, and 3 out of 5 in 2024. In a nutshell, most countries are likely to exceed their 2019 levels by the end of 2024.

Maxime Lemerle, Lead Analyst for Insolvency Research at Allianz Trade has the following predictions:

Insolvencies in Europe: The number of insolvencies to reach 59,000 in France in 2023 (+41% y/y), 28,500 in the UK (+16%), 17,800 in Germany (+22%) and 8,900 in Italy (+24%). 

Insolvencies in US: There would be an increase of +49% in 2023 as a result of tighter credit conditions and an expected sharp economic slowdown, which would mean a return to 20,000+ insolvencies per year. 

Insolvencies in Asia Pacific: China should see a moderate increase (+4%) as the reopening has not eliminated all risks, notably in the real estate sector.

While Asia and Latin America are the only two regions not seeing their insolvencies back to 2019 levels by 2024, the spillover of financial stability concerns has increased corporate risks while demand is likely to remain well below the minimum required to at least keep insolvencies in check, said Paul Flanagan, Regional CEO of Allianz Trade in Asia Pacific.

“The most fragile sectors and companies will be hit the hardest, such as those most exposed to the global slowdown; those benefitting less from China’s earlier-than-expected reopening; those in labor-intensive sectors and most exposed to recovery in wages; and those most exposed to rising interest rates,” he predicted. 

Related:  Global remote hiring: Asia Pacific emerges as the fastest growing region
Tags: Allianz TradeAsia Pacificinsolvencies
FutureCFO Editors

FutureCFO Editors

No Result
View All Result

Recent Posts

  • Modernising Days Sales Outstanding (DSO) for 2025
  • A Day in the Life: Shelly Maneth from Red Hat Asia Pacific
  • Singapore Inc: Expanding horizons in ASEAN and beyond
  • Technology essentials for the modern CFO
  • Transforming budgeting through automation

Categories

  • Artificial Intelligence
  • Audit and Compliance
  • Automation
  • Big Data
  • Blockchain
  • Business Applications
  • Business Insights
  • Case Studies
  • Cloud, Platforms and Ecosystems
  • Competencies and Capabilities
  • Digital Transformation
  • eBooks and eBriefs
  • ESG and sustainability
  • Finance Accounting and Reporting
  • Future Technology
  • General
  • Infographics
  • Leadership and Roles
  • Mergers and Acquisitions
  • Operational Accounting and Control
  • Operations
  • Polls and Surveys
  • Resources
  • Risk and Regulation
  • Strategies and Tactics
  • Tax Management and Optimization
  • Technology
  • Treasury and Cash Management
  • Videos/Tutorials
  • Webcasts/Podcasts
  • White Papers

Strategic Insights for Finance Executives

FutureCFO.net is about empowering the CFO and the Finance Team to take on the leadership position in the digitalization of the enterprise. It's more than just a portal for the exchange of industry best practices, it is about creating and growing a community of finance professionals able to share learned experiences, providing a platform for the current and next generation of finance leaders and professionals.

Quick Links

  • Videos
  • Resources
  • Subscribe
  • Contact

Cxociety Media Brands

  • FutureIoT
  • FutureCFO
  • FutureCIO
  • Privacy Policy
  • Terms of Use
  • Cookie Policy

Copyright © 2022 Cxociety Pte Ltd | Designed by Pixl

Login to your account below

or

Not a member yet? Register here

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Business Insights
    • Competencies and Capabilities
    • Digital Transformation
    • Leadership and Roles
    • Mergers and Acquisitions
    • Risk and Regulation
    • Strategies and Tactics
  • Operations
    • Audit and Compliance
    • Finance Accounting and Reporting
    • Operational Accounting and Control
    • Tax Management and Optimization
    • Treasury and Cash Management
  • Technology
    • Artificial Intelligence
    • Automation
    • Big Data
    • Blockchain
    • Business Applications
    • Cloud, Platforms and Ecosystems
    • Future Technology
  • Resources
    • Whitepapers
    • PodChats
    • Videos
  • Events
  • Awards
  • Knowledge Hub
    • Sustainable Finance
Login

Copyright © 2022 Cxociety Pte Ltd | Designed by Pixl

Subscribe