Economy business failures are expected to jump 25% this year,...

business failures are expected to jump 25% this year, says Coface

-

Published on : 04/06/2020 – 21:17

The week started in the green on the markets. The hope of seeing Europe head towards a possible peak of the coronavirus restoring energy to investors. But the atmosphere remains very feverish. And economic difficulties are far from over. Coface also expects a 25% increase in business failures worldwide over one year.

Coface is carrying out a drastic revision of its calculations. In fact, in his January forecast, the credit insurance expert envisaged an increase of only 2% in business failures.

Not all countries are on an equal footing in the face of this crisis. Bankruptcies in France could increase by 15% and while the recession should be less marked in the United States, bankruptcies could still soar: + 39%. In question, small fragile structures in the service sector, in greater number in the country and less important airbags for these companies.

Also to listen and read: Bruno Le Maire on RFI: “The recovery will be long, difficult and costly”

Aid plans deployed by States should therefore not prevent an increase in default. It must be said that world GDP could lose 1.3%.

Certainly the third quarter should experience a rebound, but a rebound from a very low floor. And above all, its trajectory is uncertain. Coface expects a soft recovery to continue in the fourth quarter, but fears that a second wave of the epidemic may cause the economy to relapse.

Finally, Coface is concerned about the medium-term solvency risks for emerging countries. Burundi, Angola, Egypt and even India and Brazil are leading the list of countries presenting the greatest sovereign risk.

.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Latest news

Anne Hidalgo more than ever favorite in Paris, lack of alliance between her opponents

The outgoing mayor of Paris and candidate for her re-election, Anne Hidalgo, at the Belleville market, May...

Switzerland 2020: is vacation possible again? Which corona rules apply?

Europe Travel in times of Corona These rules apply to holidaymakers in Switzerland ...

Coronavirus: the price of soft drinks could go up

If the terraces of cafes and restaurants are about to reopen in France, the amount of the bill could...

Ligue 1 shutdown: club presidents charge government

Bernard Caïazzo (Saint-Etienne), Gérard Lopez (Lille) and Waldemar Kita (Nantes) met this Monday afternoon to discuss in particular the...

Must read

You might also likeRELATED
Recommended to you