Euler Hermes: How many companies can become insolvent this year

Due to the brutal economic shock caused by the pandemic, the number of corporate insolvencies will increase by 20-25 percent globally this year, but each economic region will suffer from the crisis to a very different extent – Euler Hermes credit insurance analysts said. In Hungary, a decrease in GDP of at least 3, but even 7 percent is conceivable and the number of insolvencies will increase by 13 percent.

Euler Hermes, Hungary’s leading credit insurer, analyzed the impact of the coronavirus pandemic on corporate insolvency. The Hungarian economy grew by 4.9 percent last year, and in the first quarter of 2020, produced an increase of 2-3 percent compared to the same period last year.