HONG KONG,CHINA - MediaOutReach - 1 September 2020 - Atradiusforecasts a jump in insolvencies across Asia in 2020, with Hong Kong expectedto be one of the most affected markets across the globe. The increases areprimarily driven by the impact the Covid-19 pandemic is having on globaleconomies. Every major economy, except for China, is expected to enterrecession this year, the depth and length of which will be determined by theability of economies to manage health regulations and either exit lockdowns orthrive in social distancing.
Atradius Chief Economist JohnLorié commented, "Government measures have reduced the anticipated increase inbankruptcy filings in a range of ways. They have either shifted the thresholdfor filing, reduced debtor's ability to force bankruptcy, or providedsufficient financial support to delay filings. However, as the support programsbegin to expire, the number of filings should climb rapidly."
Among Asian economies,Atradius forecasts insolvencies to rise 39% in Hong Kong, behind just Turkeyand the United States in the global ranking. The city's economy is in a deeprecession and there has been little or no suspension of insolvency proceedings.However, Hong Kong's government has implemented a sizable fiscal stimulusprogramme that has helped to dampen the number of insolvencies. Elsewhere inthe region, Japan, Singapore and South Korea will experience a considerablegrowth in insolvencies during 2020 but see a significant decrease in 2021.
Bart Poublon, Head of Riskfor Atradius APAC said, "The pandemic has put downward pressure on Asia'sexport-driven economies as global supply chains come under pressure and demandwanes. However, as one of the first regions to reopen, Asia is well-positionedto benefit from the rebound in economic activity, which will lead to falling ratesof insolvency in 2021.
Get the 2020 Q3 Insolvency Report here:https://atradius.com.hk/en/publications/economic-research-2020-insolvencies-forecast-to-jump-due-to-covid-19.html
Atradius is a global provider of credit insurance, suretyand collection services, with a strategic presence in over 50 countries. Thecredit insurance, bond and collection products offered by Atradius protectcompanies around the world against the default risks associated with sellinggoods and services on credit. Atradius is a member of Grupo Catalana Occidente(GCO.MC), one of the largest insurers in Spain and one of the largest creditinsurers in the world. You can find more information online at www.atradius.com.hk
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