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Asia expects insolvency rise as China’s economy slows

  • Written by Daily Sun

Businesses are preparing for ripple effects and payment risks, adding to further anxiety about future profitability.

At the heart of the concern is the current uncertain economic landscape, largely driven by the slowdown in China's growth. Notably, however, the survey reveals Chinese companies show least anxiety about future insolvency risk.

This is the key finding of the 2024 Atradius Payment Practices Barometer survey across Asia (China, Hong Kong, India, Indonesia, Japan, Singapore, Taiwan and Vietnam).

India, Indonesia, Japan and Singapore are the markets most preoccupied about future insolvency risk but worry right across Asia reflects the view outlined by Atradius economists in the latest Insolvency report which forecasts an increase in insolvencies across Asia in 2024.

Anxiety is compounded by an already challenging credit risk environment, with late payments affecting an average 46% of B2B credit sales and bad debts standing at 4% of B2B sales invoices issued by Asian companies. Concern around business profitability thus continues to weigh heavily.

“The global economy is set to grow by 2.7% this year, but weak demand and tight credit conditions are straining businesses,” says Andreas Tesch, Chief Market Officer of Atradius.

“We expect global insolvencies to increase by 23% in 2024, and China's current economic slowdown is raising concern about rising insolvencies among many Asian companies. This could lead to deteriorating credit quality and B2B payment behaviour in several economies across Asia.”

The complete report highlighting the findings of the 2024 edition of the Atradius Payment Practices Barometer for Asia can be found in the Publications section of Atradius website.Hashtag: #AtradiusAsia #PaymentPracticesBarometer #PaymentPractices #B2BFinance



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About Atradius

Atradius is a global provider of credit insurance, bond and surety, collections and information services, with a strategic presence in over 50 countries. The products offered by Atradius protect companies around the world against the default risks associated with selling goods and services on credit. Atradius is a member of GCO, one of the leading companies in the Spanish insurance sector and one of the largest credit insurers in the world. You can find more information online at