More companies will go bankrupt next year due to the corona virus, predicts credit insurer Atradius. The group, which insures loans between, for example, companies and their suppliers, expects the number of bankruptcies worldwide to increase by 2.4 percent this year.
Last year, bankruptcies increased by 1.4 percent. The higher growth this year is mainly due to the corona virus outbreak.
In China, for example, it is already clear that consumers have bought much less. Local production chains have also been affected by the closure of factories. The largest increase in the number of bankrupt companies is therefore expected in Asia, according to Atradius.
Atradius expects an increase of 2.1 percent for Western Europe. In 2019, the number of bankruptcies fell by 0.2 percent. The United Kingdom in particular will face a substantial increase in the number of companies that are being sold, Atradius believes. For the UK, the credit insurer assumes a 7 percent increase due to the uncertainty associated with Brexit.
At the end of last year, the company assumed a fall in the number of bankruptcies due to the trade agreement that China and the United States concluded.
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