Figures compiled by credit insurer Atradius show that that the growth in companies going bust will outpace the global figure (26 percent), with the UK also seeing the largest GDP contraction in Northern Europe.
Turkey is expected to see the largest growth in insolvencies globally at 41 percent, followed by the US and Hong Kong at 39 percent.
Simon Rockett, senior underwriting manager for Atradius UK, said: “The coronavirus pandemic has been indiscriminate in its spread across the globe, resulting in lockdowns and containment measures which have had a tangible impact on economic markets. This has included delays in production, a drop in business and consumer demand and widespread business closures.”
Rockett said that wile many countries have implemented fiscal stimulus measures to soften the blow, these cannot last forever and worldwide economies are starting to realise the true economic impact in the form of recession and a bleak return to rising insolvency levels.
The report said that the number of insolvencies in the UK were “peculiar” in H1, seeing a decline of 20 percent year on year which did not reflect the state of the economy.
The credit insurer said that this was likely because the UK had announced changes to its insolvency regime prior to the pandemic. Temporary measures are also in place for struggling businesses until the end of this month.
The lowest increases globally will all be in Europe, Atradius said, naming Germany, France, Austria, Belgium, Switzerland and Italy.