Allianz Trade forecasts global business insolvencies to rise by 11% in 2024, following a 7% increase in 2023.
In Asia, insolvencies are expected to grow by 3%, or 8% excluding China. North America is projected to see the highest rise at 32%, followed by Western Europe at 14%.
The surge is attributed to a backlog of insolvencies from companies previously protected by pandemic and energy crisis support.
Sectors like construction, retail, and services are hit hardest, with large business bankruptcies reaching record highs in Western Europe. Insolvencies could increase another 2% in 2025.