According to data published on January 31, the number of companies default in the UK has reached a record high since the financial crisis of 2009 When inflation and interest rates rise and the economy stagnates, it has a heavy impact on businesses.
Figures from the UK Government’s Bankruptcy Service (IS) show that the UK has up to 22,100 companies registered as insolvent in 2022, an increase of more than 57% compared to 2021 and the highest number since 2009.
Christina Fitzgerald, Chairwoman of the restructuring and bankruptcy organization R3, warned that “2022 will be a boom year for bankruptcy” after the end of the period when companies were supported by the government to stay afloat during the pandemic. Translate.
According to IS data, the construction, retail and hospitality industries have been particularly hit hard by the sluggish economy and falling consumer confidence. On January 31, retailer Paperchase became the latest company to become insolvent and subject to regulatory scrutiny. The brand of this company has been acquired by the supermarket chain Tesco.
According to Catherine Atkinson, restructuring director, PwC Group, the number of applications from creditors asking the court to close businesses has increased four times in 2022 compared to 2021.
Also on January 31, corporations representing companies operating in the hotel and manufacturing sectors warned before a Parliamentary Committee that many British businesses will go bankrupt when the energy support package government cut in April.
Ms. Samantha Keen, President of the Association of Practitioners bankrupt (IPA), says supply chain pressures, inflation and high energy prices have created a challenge many business managers face for the first time at the same time, noting that the problem is now becoming increasingly important. deepen and spread to all sectors of the economy as falling confidence affects investment decisions, contract renewals and access to credit.
In 2022, personal defaults also hit a three-year high as the cost-of-living crisis and falling real wages hit personal finances.
[Nước Anh đánh mất “ngôi vương” trên thị trường tài chính châu Âu]
Another sign that shows the background UK economy The Bank of England (BoE) data released on January 31 showed that the number of mortgage applications approved by lenders in December 2022 fell to the lowest level since 2012. 2020.
According to the BoE, lenders approved 35,600 home mortgage applications in December 2022, much lower than the forecast of 45,000 applications and lower than the 46,200 applications in November 2022, and also a decrease in goods. fourth month in a row. The number of mortgage applications in the UK has nearly halved since reaching 74,300 applications in August 2022 and much lower than 107,095 applications in November 2020.
The BoE said that with the exception of the start of the COVID-19 lockdown in May 2020, which brought the UK housing market to a halt, the mortgage approval rate has fallen to its lowest level since January. 2009.
The BoE said the real rate of interest paid on new mortgages rose by nearly 3.7% in December 2022, the biggest monthly increase since the bank began raising rates in December 2021. .
Rising mortgage costs followed interest rate hikes by the BoE in an attempt to contain inflation. The BoE is expected to continue raising interest rates to 4% on February 2, after deciding to raise interest rates to 3.5% in December 2022, the highest level in 14 years.
Economist at consultancy R$M UK, Thomas Pugh, said the drop in borrowing suggests that after a period of recovery, consumer spending may have softened towards the end of the year. increasing the risk of economic growth slowing down in the fourth quarter of 2022 and falling into a recession.
Minh Hop (VNA/Vietnam+)