The 2023 Global Bankruptcy Report

The Escalating Trend of Bankruptcy Rates

Nearly three-fifths of the 48 countries monitored by Dun & Bradstreet and its Worldwide Network witnessed an increase in business failures during 2022. Of these, 13 registered the highest bankruptcy filings since the turn of the decade. In 2022, the global economy was on the mend, but then it was struck by two further shocks: the Russia-Ukraine crisis and monetary policy tightening. The fallout from these events had far-reaching implications that derailed the progress of economic growth and elevated the likelihood of bankruptcy across the board.

Businesses witnessed a double whammy of rising input costs, which hurt their bottom lines, and increased energy and food bills, which created a cost-of-living crisis for billions of people across the world. As consumers scaled back on discretionary spending, businesses struggled to maintain their revenue streams, thereby impacting their top lines as well.

In a bid to curtail inflation, central banks worldwide raced to hike interest rates. A staggering 33 out of the 37 economies tracked by the Bank for International Settlements (BIS) responded by raising their interest rates by an average of 380 basis points (bps) in 2022, propelling the global economy into one of the most internationally synchronous episodes of monetary policy tightening of the past half century.

 

The recent turmoil in the banking sector could make it challenging and more expensive for banks to access non-deposit funding. Small and midsized banks could be subjected to stricter regulatory scrutiny, which may limit their risk-taking and operating margins. 

Energy prices are expected to remain high and be influenced by geopolitical events, impacting businesses, particularly those in Europe. The level of bankruptcies will differ with sectors and countries. The hospitality and transportation industries are already showing signs of stress, and more industries may follow suit.

This Global Bankruptcy Report this year covers bankruptcy data from 48 markets. The following Worldwide Network members contributed with their local bankruptcy data to allow the creation of this report: Altares, CIAL Dun & Bradstreet, CRIF, D&B Hong Kong, D&B India, D&B Indonesia, D&B SAME, D&B Singapore, D&B Taiwan, Dun & Bradstreet US/Canada, Dun & Bradstreet UK, Dun & Bradstreet Europe, D&B China, Illion, Informa, Interfax, NICE D&B, and TSR. 

The data compiled has been analysed and edited by Dun & Bradstreet’s Country Insight team of experienced economists. 

To read the complete Global Bankruptcy Report, download the report below.

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