Those who profit from high interest rates and geopolitical risks

23:0130/07/2024, mardi
Yaşar Süngü

Failing to see who benefits from high interest rates, and who profits from war, chaos, and geopolitical risks, will always leave you on the losing side. To compete globally and locally, you must know your enemies and allies well. Understanding your surroundings helps you take the right stance; misunderstanding them leads to the wrong responses and losses. Global Company Bankruptcies Rise in 2023 In 2023, global company bankruptcies increased by 12% compared to the previous year, the highest level

Failing to see who benefits from high interest rates, and who profits from war, chaos, and geopolitical risks, will always leave you on the losing side. To compete globally and locally, you must know your enemies and allies well. Understanding your surroundings helps you take the right stance; misunderstanding them leads to the wrong responses and losses.

Global Company Bankruptcies Rise in 2023


In 2023, global company bankruptcies increased by 12% compared to the previous year, the highest level in the past decade. This rise is attributed to several negative factors such as the post-pandemic normalization process, prolonged high-interest rates, tight monetary policies, and weak global demand.


Dun & Bradstreet’s “2023 Global Bankruptcy Report”

According to Dun & Bradstreet’s “2023 Global Bankruptcy Report,” which includes bankruptcy data from 45 countries making up about 90% of the global GDP, the data indicates a reshuffling of the global economic cards.


The report highlights that in 2023, 20 countries, including the US, Canada, Poland, India, and the Netherlands, saw company bankruptcies exceed the global average increase of 12%. Notably, in developed countries like the US, UK, France, and Canada, the number of bankruptcies surpassed pre-pandemic levels.


Türkiye's Decrease in Company Bankruptcies

Interestingly, the report shows that 11 countries, including Türkiye, experienced a decrease in company bankruptcies in 2023, with Türkiyeseeing a 19% reduction. According to the analysis by the CRIF Monitoring Service, which examined commercial registry data and changes reflected in the Trade Registry Gazette, 343 companies went bankrupt in Türkiye last year.


Insights from Dun & Bradstreet Executives

In the foreword of the Global Bankruptcy Report, Dun & Bradstreet COO Julian Prower notes that companies that borrowed heavily during the low-interest period are now facing increased bankruptcy risks due to tighter financing conditions, higher interest rates, and shrinking demand. He highlights that the global economy started 2024 on a stronger footing than the previous year, with increased prospects for a soft landing.


Chief Economist Dr. Arun Singh, in his analysis for the “2024 Global Bankruptcy Report,” emphasized that the global economy performed better than expected last year and is expected to improve gradually in 2024. He points out that central banks' rapid rate hikes to combat inflation have caused financing and cost issues for companies, but the pressure on liquidity and payments is expected to ease later in the year. Nevertheless, monetary policy will remain tight for an extended period, posing significant cash flow management challenges for struggling businesses. Additionally, geopolitical risks are substantially impacting global bankruptcy expectations, with conflicts in the Middle East and Ukraine disrupting supply chains and affecting financial and energy markets.


Geopolitical Risks and High Interest Rates

Today, we know that those who profit from high interest rates are the same global Zionist capitalists who support child-killing Israel. This same capital not only fuels wars and chaos around the world but also increases its wealth by selling arms.

#bankruptcy
#Dun & Bradstreet
#Pandemic
#Türkiye