The number of bankruptcies in Europe is expected to outpace those in Britain this year, according to research.
Allianz Trade, which is one of the world’s largest credit insurers, said that bankruptcies are expected to rise by 16% in Britain this year compared to 2019.
Insolvencies across the Eurozone, that is any country that has adopted the Euro as its currency, are expected to jump 23% compared to pre-pandemic levels.
Roughly 28,500 British companies are expected to go bankrupt this year with a further 31,000 next year, Allianz Trade said.
Separate research from accountancy firm BDO highlighted that UK bosses are optimistic about the future, despite the number of insolvencies expected to be nearly a fifth higher than pre-pandemic levels.
While unemployment may rise, the number of people out of work will not slump to levels seen during the pandemic, or in the aftermath of the financial crisis, BDO said, with business confidence also rising in March.
Headwinds, including the “less than generous” Energy Bills Discount Scheme remain, according to Kaley Crossthwaite, a partner at BDO.
“Businesses need as much certainty and support as possible to continue weathering the persistent challenges ahead,” said Crossthwaite.