Global corporate bankruptcies are expected to rise by 35 percent in 2021 compared with 2019 because of the Covid-19 pandemic, representing an average annual compound growth of 16 percent in 2020 and 2021, an annual average similar to the one seen during the 2007-2009 crisis, according to a study from credit insurance group Euler Hermes.

The U.S. will be leading the pack with a 57 percent increase in insolvencies in 2021 compared with 2019. Among major European economies, the U.K. will experience a 43 percent rise over the two-year period, followed by Spain (up by 41 percent), Italy (up by 27 percent) and France (up by 25 percent). While, Germany will see bankruptcies rise by only 12 percent during the period, according to Euler Hermes’ estimates. 

In Asia, insolvencies could rise by 40 percent over the two-year period in China, by 13 percent in Japan, by 9 percent in India and by 6 percent in South Korea.