Global Insolvency Trends and Economic Impact Analysis

This report by Allianz Research examines the rising trend of global business insolvencies, particularly in the context of economic challenges posed by high interest rates and geopolitical tensions. It outlines the Global Insolvency Index, which surged by 10% in 2024, and projects further increases of 6% in 2025 and 3% in 2026. The report details how various regions, including North America and Western Europe, have experienced significant increases in insolvencies, with the US and Eurozone showing particularly high rates. It also discusses the sectors most at risk, such as construction and retail, and the potential impact on employment, estimating that 2.3 million jobs could be at risk globally due to rising insolvencies. The analysis highlights the implications of prolonged high interest rates and potential trade wars on insolvency rates, as well as the effects of increased defense spending and regulatory changes in Europe. Overall, the report provides a comprehensive view of the factors influencing insolvency trends and their broader economic implications.