Economist Warns Of Potential ‘Tsunami’ Of Businesses Going Bankrupt Over Coming Months
An Economist has warned of a potential ‘tsunami’ of businesses going bankrupt over the coming months.
Dan O’Brien says the number of firms winding up has fallen worldwide during the pandemic, which has been described as ‘extraordinary.’
The reasons for this include Government supports and companies who would have gone bust without the lockdowns surviving temporarily.
But Mr. O’Brien is afraid that’s created a ‘backlog’ of employers that are doomed when those subsidies end:
“We’re going to get a backlog of bankruptcies among businesses that would have gone out of business over the past 18 months anyway, plus in the sectors most affected by COVID are going to be hit once subsidies are taken away. The big concern is that we’re going to get this sort of tsunami of bankruptcies coming, and that that is going to affect how the economy functions, obviously, and also will push up employment.”