Many UK businesses are likely to feel the full effect of Brexit in 2017 with insolvencies predicted to rise by 5%. This would put the country ahead of Western and Central and Eastern Europe which are expected to see insolvencies fall.
This should put businesses on high alert and increase the need to make preparations for tough times ahead. Measures that can prevent a business from entering insolvency include forward planning and acknowledging that there are financial difficulties before problems become insurmountable.
Total corporate insolvencies in Western Europe are expected to fall by 4% in 2017 while central and eastern Europe are expected to fall by 1%. This suggests that EU businesses will find the immediate aftermath of Brexit easier to navigate than those in the UK.
Support from the European Central Bank is expected to provide a boost to Western European economies with a supportive fiscal policy designed to increase corporate profitability.
The UK meanwhile is expected to record the highest levels of business bankruptcy in Europe with more than 20,000 businesses entering insolvency.
The UK has been enjoying a long period where insolvencies have fallen. 2010 was the last time the country saw an increase in insolvencies.