Level of UK Corporate Insolvencies set to increase
According to the latest predicted figures from Atradius, the number of insolvencies expected across the advanced markets is expected to fall by 3% this year, and 2% next year, largely due to the robust recovery of the Eurozone. The forecast highlights the growing GDP growth across advanced markers as a key factor, with a continued upward trend expected in 2018 as labour market strengthen, confidence grows and businesses roll out more supportive policies.
According to analysis as part of Atradius’s insolvency forecasting model, the broad-based recovery in the Eurozone is encouraging a growth in domestic demand, further supported by low rates of inflation and progressive monetary policies. This coupled with a stabilisation in politics, and a loss of favour of Eurosceptic parties on the Continent are combining to create a more stable, growing trading landscape.
Across the Eurozone as a whole therefore, insolvencies are expected to be down 6% this year and 5% in 2018, with the Netherlands seeing particularly strong performance which is likely to see insolvencies drop 20% in total. On the other side of the world, US recovery is maintaining the same trend, with high business confidence. The Business Roundtable CEO Economic Outlook Index which measures spending, investments and sales projections of the top 200 US businesses, is well above historical averages. US GDP is expected to grow 2% in 2017 and 2018.
Sadly, the UK is bucking the trend, with an expected increase in insolvencies as growth slows and uncertainty rises. Read the full story here…
If you are worried about the potential of more insolvencies in the UK, and want to reduce the risk for your business, ask our team about credit insurance tailored to you. Call 01275 817320.