Allianz Research

Volle Kraft voraus:
Global Wealth Report 2025

Covid-19 to increase firms’ liquidity needs to a record USD8tn as payment delays and inventories surge

Covid-19 entails longer payment delays and rising inventories among large corporates. Global firms’ liquidity needs, as measured by Working Capital Requirements (WCR) will increase by +5 days to 74 days in 2020 or USD8tn (+USD140bn). These liquidity needs are unfortunately not on the radar of policymakers, yet represent the equivalent of close to 10% of the global money supply. As a result, suppliers will continue to play the invisible bank to their clients, use more short-term credit lines from banks and look for additional funds from shareholders.


Bruised but not beaten, Europe’s textile industry is a perfect candidate for a greener and digital recovery

A Faustian bargain to limit short-term economic pain: Since the onset of Covid-19, policymakers have taken swift and unprecedented action.

Covid-19 and the business insolvency time bomb

Even as economies emerge from lockdowns, we expect the bulk of insolvencies is still to come, largely between the end of 2020 and H1 2021.