Australia is tipped to enter a recession over the next 12 months, increasing the rate of company insolvencies as firms struggle to absorb higher interest rates, costs, and weaker consumer spending.
According to The SMH, up to 70% of insolvency practitioners, lawyers, managers, and corporate debt restructuring specialists surveyed by KordaMentha and Turnaround Management Association (TMA) anticipate a recession will occur within the next 12 months.
Around 90% of insolvency sector specialists polled anticipate the economy will enter a recession over the next two years:
Advertisement
According to ASIC, corporate insolvencies increased by 62% in the year to June, reaching its highest level since 2018-2019. 7943 companies appointed administr…
Read the full article at: https://www.macrobusiness.com.au/2023/08/recession-pulls-businesses-into-insolvency-storm/