Allianz Trade releases today its latest Global Insolvency Report and unveils updated forecasts for 2023 and 2024. According to the world’s leading trade credit insurer, after a small rebound in 2022 (+1 per cent), global insolvencies are set to jump by +6 per cent in 2023 and +10 per cent in 2024.
Waning cash buffers and worsening profitability are putting many sectors at risk
What’s behind this acceleration? The recession in corporate revenues is gaining traction amid lower pricing power and weaker global demand: As of Q2 2023, the revenue recession has been broad-based across all regions for the first time since mid-2020 (-1.9 per cent y/y). This combined with continued high costs is squeezing profitability. As a result, liquidity positions are worsening fast and not likely to improve before 2025.
