Daily Management Review

D&B: Number of corporate bankruptcies in the world went down in 2016


03/14/2017


Number of corporate bankruptcies in the world declined in 2016 and reached a record low mark in several leading countries thanks to stimulating monetary policy and ultra-low interest rates in developed economies. This is evidenced by a report of American company Dun & Bradstreet.



Mike Mozart
Mike Mozart
Thus, certain circumstances such as improvement of the economic situation, stimulating monetary policy, resulted in a decrease in number of bankruptcies occurred in 16 of the 23 European countries surveyed, including France (minus 9%), Spain (18%), Portugal (minus 23%), Sweden (by 5%).

Number of German companies that were declared bankrupt decreased by 6%, to 1.8 thousand per month, including due to weakness of the euro, which stimulates the growth of exports. In the UK, which is preparing for Brexit, the number of ruined companies grew by 10% in 2016, up to 4.5 thousand a month.

In the US, number of companies ruined in 2016 was 2% less than a year earlier. At the same time, America continues to be the world leader by number of corporate bankruptcies. 25,000 companies out of 30 million operating companies go bankrupt on a monthly basis.

In China, which economy is in the stage of gradual deceleration, volatility of the number of bankruptcies remains quite high against the background of their small number (150-200 per month).

At the same time, the Japanese economy is still trapped in low rates and low growth. However, the number of ruined Japanese companies has updated the historical minimum and decreased by 4% by 2015, to about 700 per month. The reason lies in the fact that Japanese banks are loyal to the practice of debt restructuring, the country has facilitated access for small and medium-sized companies to financing, and in general, debtors prefer gradual winding-down of a business to the expensive bankruptcy procedure.

In general, according to D&B, number of bankruptcies declined in 9 out of 11 surveyed countries in the Asia-Pacific region.

American Dun & Bradstreet, established in 1841, is the world's most famous source of data on companies and related credit risks. 

source: dnb.com






Science & Technology

Germany Introduces The First Ever Train To Run On 100% Hydrogen

Germany Plans On Cyber Security Research To End Reliance On U.S. Tech

Fuchsia will kill Android by 2023: Top 5 facts about the new OS

New Study Finds Goats Interact More With Happy People

More than 32 thousand "smart" houses under threat of hacker attack

Internet addiction and children: Global plague

Apple takes up to develop Apple Watch for health monitoring

Hyperloop is growing in Europe

Analysts: US gamers prefer mobile games

Google Assistant Winner Of Head-To-Head Test Of Digital Assistants, Beats Siri And Alexa

World Politics

World & Politics

Ex-Brexit Minister Said A ‘Reset’ Is Needed For Brexit Talks

10 countries with the best healthcare systems

Foreign Experts To Be Allowed By North Korea For Permanent Destruction Of Missile Sites

Ireland recovers €14.3 billion from Apple

Is China going to cancel its birth limit policy?

The US is ready to start negotiations with China

US and China start 5G race

Is Czech Republic posing a threat to the European Union?