Global insolvencies rising even faster than expected, said credit insurer Atradius recently.
The company expects the highest increase of corporate insolvencies in advanced markets since 2010.
In the company’s global insolvency forecasts for 2019, Asia Pacific’s corporate insolvencies has increased for the first time since 2009, with an expected 1.8%
In addition, North America is in the lead with 3.2% and Western Europe 2.7%.
Atradius expects the negative effects of this to be felt increasingly strong and the upward trend in the number of bankruptcies will continue in 2020 with an expected further upsurge of 2%.
Many US companies, especially in the vulnerable retail sector, will be affected, the credit insurer noted.
Globally, Atradius expects solvencies to increase by 1.2% in 2020.
"Given the increasing tensions with China, it is writing on the wall that the US has taken over the leading position in the rise of insolvencies from the eurozone. It is also worrying that similar developments are taking place in Asia-Pacific,” said John Lorié, Chief Economist at Atradius.