While people around the world are awaiting a second wave of the pandemic, the devastating tsunami of bankruptcies caused by the virus has already washed away a lot of companies. The US and EU business sectors are bearing the brunt of the COVID-19 economic crisis.
In total, 147 large companies (with a turnover of more than €50 million) across the globe filed for insolvency in the period from April to June this year. Last year, only 74 firms went bankrupt. Thus, the figure almost twice surpassed the one set in the same period a year ago. Notably, the corona tsunami severely hit the American and European business sectors with 52 and 64 firms closed, respectively. Retail trade, air transportation services, service sector, energy, and the automotive industry were the most affected sectors of the economy. The list includes one of the most profitable sectors across the market. Many experts fear the domino effect. They think that in the near future, smaller companies may also be unable to stay afloat due to the bankruptcy of the largest ones.
In the US, this wave of bankruptcies is the biggest since the 2009 Global Financial Crisis. Analysts also revealed a disappointing forecast for Germany, a country with the largest economy in the EU. In 2020, more than 29,000 local companies are expected to go bankrupt in Germany.
