Hard bump ahead? Decline in insolvencies and bankruptcies is a ticking time bomb

The vast arsenal of fiscal, monetary and legal measures used by Australian governments to offset the COVID-induced economic crisis have worked well. They did not prevent a recession (defined technically as two quarters of negative GDP growth) but things could have been much worse.

What is particularly interesting is that the expected consequences have not shown up in the official statistics for financial distress – insolvent companies entering administration and individuals declaring bankruptcy.

Indeed, a misleading impression of 2020 being one of “economic good times”…

© La Conversation - mercredi 10 mars 2021