The 2020 Global Bankruptcy Report

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Business failures on pause as the global emergency continues

In a majority of monitored economies, even as the pandemic crisis impacted, corporate failures declined in number in Q1-Q3 2020, according to data from Dun & Bradstreet and its Worldwide Network.

Overview of Global Payment Trends

Despite its far greater scale and intensity, relative to the global financial crisis, sectoral GDP data demonstrate that the global pandemic crisis has shown a more predictable risk footprint due to its sectoral pattern.

The focus of government measures shows that SMEs have been at the forefront of the impact crater of the crisis due to lack of financial depth (and access to capital markets), creating dependence on public support.
 

The focus of government measures shows that SMEs have been at the forefront of the impact crater of the crisis due to lack of financial depth (and access to capital markets), creating dependence on public support.

Failures as defined by Dun & Bradstreet and its Worldwide Network Partners declined in most economies in Q1-Q3 2020 despite extreme pandemic supply and demand shocks.

 

Across the board, in 39 economies publishing separate data for the accommodation and food services sector, gross value added (mostly profits and wages) declined by deep double-digit rates y/y in Q3. The y/y decline in Q3 ranged from -62% for Argentina, to -18% for the Ukraine, via the -28% and -26% recessions for UK and Russia.

Even in countries that contained their domestic pandemic, the demise of international travel and border closures meant the transportation and storage component of GDP fell drastically in Q3, by 30% and 32% y/y in Singapore and New Zealand.

Few countries publish GDP series purely for aviation, but the series for the Philippines and Mexico were down by 98% and 90% y/y in Q3. And in most cases, Q3 was an improvement on Q2 2020, when so many governments tried and failed to emulate China’s disease control with national lockdowns.

Methodology

This Global Bankruptcy Report covers bankruptcy data from 36 markets. The following World Wide Network members contributed with their local bankruptcy data, to allow the creation of this report: Altares, Bisnode, CIAL Dun & Bradstreet, CRIF, D&B Hong Kong, D&B India, D&B Indonesia, D&B Israel, D&B SAME, D&B Singapore, D&B Taiwan, D&B Thailand, Dun & Bradstreet US/ Canada, D&B UK, Huaxia D&B China, ICAP, 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.

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