Experts at credit insurer Euler Hermes expect a 0.8 per cent rise in company insolvencies to 38,000 in 2005, following a drop in insolvencies in 2004.
Romeo Grill, chief economist at the insurance company, believes that export-orientated businesses will be increasingly affected in the coming year. He explains his forecast by the state of the global economy, which he expects to weaken in 2005.
The economist comments that the services, construction and trade sectors are most affected, and that the retail trade sector is expected again to suffer from weak consumer spending.
A further factor is said to be that of payment delays, especially among smaller businesses. This is said to apply especially in the construction, skilled crafts and retail sectors, where 28 per cent of businesses have indicated that they would react to a delayed payment by delaying payments themselves.
Source: Die Welt
