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Business failures to rise in 2006.(HEADLINES)(Brief article)

Business Credit

| January 01, 2006 | COPYRIGHT 2006 National Association of Credit Management. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

As a result of the slowdown in the world economy (just 3 percent growth), 2005 shows a clear change in the trend of business casualties. The Global Index of Business Failures created by Euler Hermes credit insurance is thus expected to rise by 1 percent next year.

Following a slowdown in the reduction of business failures during 2005, the Global Failures Index (GFI) suggests an increase in casualties during 2006 in the main industrialized countries: Germany (+4 percent), the UK (+3 percent), the USA (+3 percent) and Japan (+2 percent) should thus see an increase in bankruptcy filings.

The trend reversal is linked in particular to the U.S., where the destruction caused by hurricane Katrina and ...

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