Number of insolvencies set to climb 20% in 2021
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The number of corporate insolvencies in Hungary is expected to climb 20% this year, edging over 5,150, state news wire MTI reports, citing an analysis by credit insurer Euler Hermes.
Tünde Bujdosó, in charge of risk management at Euler Hermes, said the number of insolvencies in the first half rose 18% from the same period a year earlier.
She noted that the number of insolvencies is still lower this year than in 2019, thanks to the faster-than-expected global economic recovery, economic stimulus in Hungary and a quicker return to normalcy in the country because of the high inoculation rate.
However, some sectors remain exposed: the number of insolvencies in the tourism and catering industry reached 190 in the first half, up 36% from the same period in 2019; and the number of insolvencies in the construction sector climbed 40% from the same period a year earlier.
Euler Hermes expects higher feedstock prices, the chip shortage, supply chain interruptions and pressure to make technology investments will boost the number of insolvencies among local automotive industry suppliers.
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