In 2023 and 2024, global insolvencies are adjusting back to pre-pandemic levels, with a significant increase noted in 2023 due to the normalization post-pandemic and the bankruptcy of "zombie firms".
This rise is attributed to reduced government support and tighter lending conditions, affecting various regions, notably HK, Netherlands, USA, South Korea, and Italy. In 2024, the increase continues, though at a slower pace, with significant impacts in Singapore, Poland, Italy, Netherlands, and the USA. The global economy is experiencing a slowdown, influenced by monetary policies and geopolitical factors, with varying impacts across different regions.
Advanced economies face slower growth, and the financial sector is adjusting to tighter lending standards. By the end of 2024, insolvency rates are expected to stabilize and align with pre-pandemic levels.
Source: Atradius