Twice as many French companies are predicted to fail as British companies.

Emmanuel Macron has been warned that France is on the verge of «democratic collapse». Photo: Ludovic Marin/AFP

Twice as forecasts show that in the next two years many French companies will go bankrupt than British ones, which will further increase the pressure on Emmanuel Macron.

About 59,000 companies are forecast to fail in France this year, falling to 57,000 in 2024. According to Allianz Trade research, the figure is 28,500 in the UK and 31,000 in 2024.

Surge comes as French president battles backlash against economic reforms, including decision to raise minimum retirement age.

Satisfaction with 2903 macroeconomic performance

Forecasts also show bankruptcies this year in the EU will be much higher than in the UK. in proportion to pre-pandemic levels.

There will be 23% more bankruptcies in the eurozone in 2023 compared to 2019, compared to a 16% increase in the UK.

Credit insurers who help businesses or customers pay for supplies or goods are often referred to in the corporate world as the «canary in the coal mine.» When they «shelter» a company, it indicates financial concern.

Allianz Trade is one of the world's top three credit insurers along with Atradius and Coface.

Although the outlook for the UK is better than for the continent, the increase in bankruptcies in the UK is still a concern, experts say.

Maxim Lemerle, Lead Analyst at Allianz Trade, said: a backdrop of a sharp slowdown in growth, earlier monetary tightening and rapid inflation.”

Meanwhile, a separate study shows that British bosses are cautiously optimistic about the future.

CPI inflation

Business confidence rose in March as concerns about inflationary pressures fell to a 12-month low despite the end of government support for electricity bills.

Accounting firm BDO, which compiled the analysis, also found that confidence in return to the British labor market.

BDO said that although unemployment may rise due to the economic downturn, the number of unemployed will not decrease. down to levels seen during the pandemic or after the financial crisis.

Kaley Crossthwaite, partner at BDO, said: The pressure on prices and supply chains is easing slightly. Better production and inflation indices will only improve the outlook as they work to stimulate growth and make signs of recession a thing of the past. if recession expectations persist, the economy is likely to face further headwinds despite recent resilience. Businesses need as much reassurance and support as possible to continue to overcome the ongoing challenges.”