The largest number of them, namely every third insolvency, are companies operating in trade and providing transport repair services – 36.5%. This applies to both wholesale and retail trade, car and motorcycle repair.
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In addition to retail and repair activities, a large number of officially registered bankruptcy cases were recorded in the financial sector:
- financial and insurance activities;
- real estate transactions;
- professional, scientific, and technical activities;
- administrative and support services.
The manufacturing industry also has a significant number of bankrupt legal entities (16.6%), followed by construction (9.4%), agriculture, forestry and fisheries (6.25%), and information and telecommunications (4.7%).
Companies in the logistics and food service industries almost never file for bankruptcy:
- transportation, warehousing, postal and courier activities - 2%;
- education; health care and social assistance; except for activities of public organizations - 1.04%;
- temporary accommodation and catering - 0.5% of bankrupt companies.
The World Economic Forum in Davos predicted earlier that the global economic growth rate will slow down in 2024. This is the opinion of more than half, namely 56%, of the chief economists of the companies surveyed at the forum. The remaining respondents expect global GDP growth to remain at the level of 2023 or accelerate.
The IMF estimates that the global economy will grow by 2.9% in 2024 after growing by 3% in 2023. The World Bank tentatively estimates global economic growth in 2023 at 2.6%, with the forecast for 2024 confirmed at 2.4%.
Experts interviewed by the Financial Times noted in their consensus forecast that the Eurozone economy will see only weak growth in 2024, and that factors such as high interest rates, potential problems in the energy market, and geopolitical instability could trigger a deeper recession.
Europe’s largest economy went into the red for the first time since the pandemic. Germany’s GDP in 2023 declined for the first time since the COVID-affected 2020 amid high inflation, rising interest rates, and a downturn in activity both at home and abroad. Germany’s GDP in 2023 was 0.7% higher than in the pre-COVID year of 2019.
Thousands of companies in the UK could begin bankruptcy proceedings, media reported in January 2024.
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Read the original article on The New Voice of Ukraine
Section: Nation
Author: Богуслав Романенко
