Bustin' Bankruptcies: Allianz Trade Predicts a Spike in Corporate Insolvencies
Increase in Insolvencies Forecasted to Persist Until 2025 - Prediction: Increase in Bankruptcy Cases Persists, Anticipated to Peak by 2025
Hey there, buckle up as we delve into some troubling economic forecasts! Credit insurer Allianz Trade has dropped a bombshell, predicting a significant increase in corporate insolvencies both domestically and globally. And yes, that includes the mighty land of beer, bratwurst, and autobahns – Germany.
In their eye-opening report titled "Global Insolvencies in Times of War Economy", the gurus at Allianz predict 24,300 insolvencies in Germany this year, a whopping ten percent rise compared to last year. Milo Bogaerts, Germany's CEO of Allianz Trade, isn't pulling any punches; he echoes that risks remain sky-high.
So, what's causing this financial fiasco? Germany's weak economic growth, structural challenges like the energy transition, and trade conflicts are the main culprits. Breaking news, huh? You bet your sweet bippy it is!
Back in the day, things were looking even grimmer. Allianz's crack team in Paris forecast an increase of around 23 percent in German insolvencies compared to last year. Yet, there's a sliver of hope for 2026 – economists predict a measly two percent increase.
Germany's not exactly shining in the international spotlight. Allianz Trade also predicts a rise in corporate insolvencies worldwide. They're expecting around six percent more compared to last year, with a ten percent increase predicted for 2024. Aylin Somersan Coqui, Allianz Trade's fearless CEO, points to one big reason – central banks delaying the easing of interest rates. High interest rates? They're the financial termites wreaking havoc on highly indebted companies.
- Germany
- Insolvencies
- Corporate insolvencies
- Allianz SE
- Paris
- Hamburg
- Milo
Sources:
- Global Insolvencies in Times of War Economy
- Reuters
- Bloomberg
- Handelsblatt
- Allianz Trade, a credit insurer, forecasts a ten percent increase in insolvencies in Germany this year, specifically predicting 24,300 corporate insolvencies, as outlined in their report titled "Global Insolvencies in Times of War Economy".
- In a concerning trend, Allianz Trade also anticipates a six percent rise in global corporate insolvencies this year compared to last, with a ten percent increase predicted for 2024.
- The CEO of Allianz SE, Aylin Somersan Coqui, attributes this rise in corporate insolvencies worldwide to central banks delaying the easing of interest rates, which she believes are acting as financial termites wreaking havoc on highly indebted companies.
