Rebalancing the Global Economy
The incongruences between developing and developed economies are decreasing. As reported in our previous Global Bankruptcy Report, failure rates continue to decline in most developed and developing countries.
According to Dun & Bradstreet’s analysis, the global economy has become more balanced. Of the total 46 countries in Dun & Bradstreet’s analysis, 28 have experienced declining bankruptcy rates as compared to 2016; meanwhile, rates stagnated in two countries and increased in 16. Amongst this rather positive backdrop, global real gross domestic product (GDP) is set to increase by 2.9% in 2017, with noticeable growth in mainland Europe, Brazil, and Russia. In large EU economies like France, the number of corporate failures has declined by 9.7% in the year to June 2017- an improvement reflecting the rebalancing state of the global economy.
Emerging Trends Within This Edition of the Global Bankruptcy Report:
- The global economy is rebalancing; the failure rate divide between developing and developed countries is shrinking
- Bankruptcy rates in the US have increased, the reverse of current failure rate trends
- Brazil and Russia are predicted to have their first year of positive growth
- UK is the only major European economy to record increasing bankruptcy rates
- The regions experiencing the most improved trends are Central and Eastern Europe
- Cross-border business transactions have greatly decreased in the last six months
- Dun & Bradstreet predicts global real GDP will increase by 2.9% in 2017 as compared to 2.4% in 2016