The global business landscape, still adjusting to post-pandemic disruptions, was met in 2024 by a series of economic headwinds that pushed insolvencies to their highest level in over a decade. Across the economies that Dun & Bradstreet tracks, 65% experienced an increase in corporate bankruptcies — up sharply from 53% in 2019. This marks a significant shift, reflecting both cyclical pressures and structural challenges that businesses now face. 

The rise in bankruptcies was neither sudden nor uniform across regions, but rather the result of prolonged financial strain that has accumulated over the past few years. Many firms across the world managed to navigate the initial shocks of the pandemic with support from governments and accommodative monetary policies. However, the withdrawal of these measures exposed fundamental vulnerabilities. The global economy entered 2024 grappling with the aftershocks of inflation, interest rate hikes, and supply chain restructuring — each of which played a crucial role in shaping the insolvency trends observed throughout the year. 

Central banks across advanced and emerging markets kept interest rates elevated in response to persistent inflation. Although inflationary pressures eased from their 2022 peaks, headline inflation remained above target in 30% of advanced economies in 2024. Additionally, high core inflation led some central banks to reconsider the pace of monetary easing. As a result, interest rates remained elevated through the first half of the year. Notably, 80% of the economies that implemented rate cuts in 2024 made deeper reductions in H2 than in H1.