Economic & Trade Risk Insights
 

The global business environment faces a prolonged period of elevated risk. Allianz Research expects global business insolvencies to rise by +6% in 2025, and again by +5% in 2026, before a modest decline in 2027. This marks the fifth consecutive year of increases, pushing global bankruptcies +24% above the pre-pandemic average. This sustained surge is driven primarily by North America and Asia, underscoring the necessity for robust credit risk management.

Allianz Research forecasts global business insolvencies to rise +6% in 2025, and +5% in 2026, reaching record highs. Explore the global insolvency outlook for 2026-27, including the risks from low growth, persistent financing cost and sector fragilities.

The global rise in business insolvencies is not just a cyclical correction; it’s driven by structural challenges that will keep failure rates high through 2026. Despite Western Europe showing a modest decrease in 2026, the overall global index is set to rise again by +5%. This FAQ addresses the three critical structural factors that businesses must manage to survive the prolonged economic headwinds.

For the highly cyclical chemicals sector, managing credit risk is paramount. While the APAC region drives much of the global output, the overall sector rating globally and in APAC remains at Medium Risk. This suggests that despite growth, underlying financial vulnerabilities persist, amplified by oversupply, geopolitical conflicts, and rising insolvencies. This data deep dive examines the key financial and market risks that chemicals companies must monitor in 2025, with a focus on regional financial health.

The Asia-Pacific region is the world's largest and fastest-growing market for chemicals, and global shifts are reshaping its future. Rapid industrialization, urbanization, and increasing consumer spending in countries like China and India are creating robust demand. At the same time, the sector faces a twin challenge: optimizing operations to counter global oversupply and adapting to the growing necessity of environmental sustainability. This guide highlights the key trends driving growth, investment, and transformation in the APAC chemicals sector in 2025. 

The APAC chemicals sector is undergoing significant transformation, presenting both massive growth opportunities and critical operational challenges. Based on our latest analysis, we've compiled the most important questions for businesses operating in or trading with this dynamic region. This FAQ provides expert answers on everything from regional growth drivers to major supply chain risks.