The economic measures and state supports that came into play due to the coronavirus all over the world have helped suppress bankruptcies since 2020. However, with the gradual removal of government subsidies, a 15 percent increase in bankruptcies globally is expected in 2022.
In Turkey, where company bankruptcies vary from month to month in 2021, a decrease of 8 percent was recorded in the first eight months. It is estimated that the decrease in company bankruptcies in Turkey will reach 15 percent by the end of the year.
A 15 percent annual increase in bankruptcies is expected in 2022
According to the Global Bankruptcy Report, in which credit insurance company Euler Hermes closely examines the course of bankruptcies in 44 countries, an annual increase of 15 percent in bankruptcies is expected in 2022, after a two-year decline of 12 percent in 2020 and 6 percent in 2021.
According to the report, bankruptcies will remain low in most countries by the end of 2021, and the acceleration for a delayed return to normalcy in bankruptcy levels will only begin in 2022. However, even in 2022, the bankruptcy level will remain below pre-coronavirus levels, with an average of 4 percent in many countries.
Due to new restrictions and more limited policy support, bankruptcy levels in Africa are expected to rise above pre-coronavirus levels by 2021. The same situation will be in question for Central and Eastern Europe and Latin America in 2022.
In Western Europe, the situation seems a little more complicated. Spain and Italy, where the share of coronavirus-sensitive sectors is high in all sectors, will largely complete the return to old levels in bankruptcies in 2022 (bankruptcy figures for both countries are 5,111 and 10,500, respectively). In contrast, due to large support packages and/or extension of support measures, it will take more time to return to pre-crisis levels in Germany with 16,300 bankruptcies, France with 37 thousand bankruptcies, Belgium with 8,150 bankruptcies and the Netherlands with 2,400 bankruptcies.
The U.S. will be the obvious exception, with bankruptcy numbers that will remain low in 2021 and 2022. Big government support and the fastest economic recovery in more than three decades will play a role in this. There will be fewer bankruptcies in 2022 compared to 2019 in Asia, which has emerged from the pandemic faster and started to recover economically earlier.
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