The direct economic impact of business failure will be significantly higher in 2023 compared to 2022 levels, PwC is predicting in its Q1 2023 Insolvency Barometer.
PwC research estimates that there was 1.8bn of debt owing from businesses that failed in 2022 with the average debt per SME (excluding the larger companies) being c.2m.
On PwCs tally, the largest ten company failures comprised over 50% (debt of c900m) of the total direct economic impact of all the business failures in 2022.
PwC expects the overall insolvency rate to move closer to the long term average and back towards the 2019 pre-pandemic figure of 850 insolvencies. However, the Barometer warns that this could rise above 1,000 if a global recession takes hold.
Barometer dat…
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