Brexit vote 'triggered global weakening of economic confidence'
The Brexit vote has triggered a weakening of economic confidence across the globe, a new report claims.
The referendum result has sparked a wave of negativity leading to increased bankruptcy projections which will see no overall improvement in insolvency levels in advanced markets this year or next, according to a report by trade credit insurer Atradius.
UK insolvencies are projected to rise by 2% in 2016, and by 3% in 2017, the impact study states.
Simon Rockett, senior risk manager at Atradius, said: "Brexit is already impacting confidence in the UK with the Purchasing Managers' Index contracting to a level not seen since April 2009.
"Confidence is likely to also be affected in a number of other Eurozone countries, particularly those with high exposure to the UK, for example we are already seeing an upward revision of insolvency forecasts for Ireland and the Netherlands.
"The Brexit fallout is likely to extend further across European markets with countries struggling indirectly with the economic slowdowns.
"Doing business both at home and overseas is inherently fraught with risk. A decline in confidence and the increasing uncertainty in the economy has a knock-on impact on the trading landscape.
"However, keeping trade links open is key to stimulating the economy. To achieve this, businesses must employ a robust risk management strategy in order to protect themselves from potential insolvencies and the subsequent risk of non-payment in what has become a more fragile economic climate."