FRANKFURT, Oct. 21 (Xinhua) -- Global business insolvencies are set to rise for the fourth consecutive year in 2025, according to a study published by credit insurer Allianz Trade on Tuesday. The total number of cases is expected to increase by 6 percent year on year.

In its latest report on global insolvencies, Allianz Trade projects that global corporate bankruptcies will rise by a further 5 percent in 2026.

Aylin Somersan Coqui, CEO of Allianz Trade, warned that the consequences of ongoing trade conflicts could soon test corporate resilience, raising the risk of domino effects. Coqui also noted that the growing number of business start-ups in Europe and the United States poses an additional risk, since newly founded companies are statistically more likely to default.

Germany, Europe's largest economy, is expected to see a particularly sharp increase in insolvencies in 2025, rising by 11 percent to approximately 24,320 cases, nearly double the global average, according to analysts.

Furthermore, insolvencies in Germany are projected to remain at a high level in 2026, according to Allianz Trade.

However, a turnaround is anticipated in 2027, particularly in Germany, where insolvencies are expected to decline by about 4 percent to 23,500 cases, driven by the positive impact of government economic stimulus measures. Globally, insolvencies are forecast to edge down by around 1 percent in the same year.