Patching things up: Fewer insolvencies, except in Europe

Corporate insolvencies confirmed the generally expected rise in 2013 (+2%) due to the slowdown in the global economy. This increase, following three consecutive years of decline, nevertheless masks two significant but opposite trends: on the one hand, the continued decline in insolvencies in North America (-11%) and Asia (-4%); on the other hand, a rise in Latin American insolvencies (+10%) � albeit from a low level � and particularly in Central and Eastern Europe (+6%) and Western Europe (+9%), where the number of insolvencies continues to rise in manufacturing (+3%) and construction (+1%), with the exception of Germany and the UK.

These two contrasting trends are expected to moderate in 2014 when the slowdown in emerging economies should be offset by the better outlook in the more advanced countries.

Countries experiencing a decline in insolvencies will become the majority in our sample but our Global Insolvencies Index will only show a slight decline (-1%) and nearly 7 out of 10 countries show a higher level of insolvencies in 2014 than before the 2008 crisis.