The Euler Hermes 2018 insolvencies report provides insights and forecast for 43 countries worldwide. Here are some of the key takeaways:
- At a global level, the downward trend in business insolvencies paused in 2017 (+1%). This was due to a rebound in Asia and on-going difficulties in emerging markets (Russia, Brazil).
- In 2018, the improved momentum should benefit companies (-1%). Thus, insolvencies are set to decrease -or stabilize- in a majority of countries. North America and other advanced economies will be key examples of this trend.
- Yet insolvencies will remain above their 2007 level in nearly 1 out of 2 countries, particularly in Europe.
- While the frequency of insolvencies is set to diminish in 2018, this will not benefit companies equally. Figures on major insolvencies- of companies with a turnover above EUR 50 million - proves that major failures increased every quarter in 2017.
- The total number for the year was up by a staggering 57 cases to 321 companies representing a cumulative turnover of EUR104bn. This is a sharp rise to the tune of +EUR10bn compared to 2016.
