Since November 2023 corporate insolvency rates have shown positive signs that the rate of insolvencies since the pandemic may be tailing off and starting to reduce.
There have also been positive signs in the economy with the official end of the recession, inflation coming under control and a general increase in business confidence.
However, in previous recessions there has been a lag with insolvencies rising after a recession. There are still high levels of debt in businesses following the pandemic and this, together with continuing higher interest rates and a relatively weak growth in demand, is likely to result in a bumpy road ahead in 2024 as evidenced by the recent uptick in insolvencies.
Whilst all types of insolvency have…
