The coronavirus pandemic is leaving deep scars on the global economy. According to the world's leading credit insurer Euler Hermes, this will likely to lead to a deep recession in world trade and the global economy – and consequently to a wave of insolvencies worldwide. Globally, the number of insolvencies is therefore likely to rise for the fourth time in succession in 2020 – albeit at an unprecedented rate of +20 percent. By comparison: in 2019 the increase was at 8 percent.
Global trade is threatened with losses of $3.5 trillion. This means a 15 percent drop in the volume of goods and services traded, and an even more severe setback in the value of goods at -20 percent. The global gross domestic product (GDP) is in the deepest recession since World War II with an estimated -3.3 percent due to the pandemic.