Hong Kong is projected to have the largest increases in business insolvencies worldwide this year, with a surge of 44 percent, says Allianz Trade.
The institution mentioned a 6 percent increase globally for the third quarter of 2025, with a persisting upside trend in most countries despite already high levels, according to an outlook report released by Allianz Trade on Tuesday.
Following Hong Kong, Türkiye, Greece, Italy, and Switzerland are expected to see significant increases in insolvencies, with year-on-year rises of 40 percent, 40percent, 35 percent, and 28 percent, respectively.
It mentioned that the expectation by the end of 2025, business insolvencies will either rise or be stable in two-thirds of countries, representing 70 percent of global gross domestic product, and with three out of four countries exceeding 2016-2019 levels.
The global rise in insolvencies is expected to continue for the fifth consecutive year in 2026, albeit at a slower pace of 3 percent. This trend is forecasted to be driven primarily by North America and Asia Pacific, both projected to see a 4 percent.
In addition, the institution noted that the economic growth forecast for China this year has been revised upward by 0.2 percentage points to 5 percent, while the forecast for next year has been adjusted upward by 0.5 percentage points to 4.7 percent, data from Allianz showed.
This growth is mainly driven by frontloading from the US in the first half of the year, strategic rerouting to circumvent tariffs, expanding market shares in the rest of the world, a weaker currency and competitive prices.
