Green shoots? Business failures fall 20%
New Zealand behind only Latvia as best-performing economy in September quarter, according to D&B index measuring insolvency rates in 30 key economies.
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The rate of business failure in New Zealand has started to slow, with the number of insolvencies dropping 20% over the past year.
According to the Dun & Bradstreet Global Insolvency Index the result puts New Zealand as the second-best performing economy after Latvia for the September quarter.
According to data provided by D&B, the number of insolvent businesses in New Zealand dropped by 2.5% in the second quarter of 2011 and fell by six% since the June quarter in 2010.
John Scott, Dun & Bradstreet New Zealand General Manager, said New Zealand's position - while promising - was also exposed to risks from the European sovereign debt crisis and increased insolvency rates in Australia.
Australia's rank on the insolvency index is alongside Italy, Spain and Hungary.
“Australian business failures have surged in the June quarter with nearly 1000 insolvencies in July alone. Given that Australia is our largest two-way trading partner and accounts for $17.7 billion in total trade, it is crucial that Kiwi businesses do not take our lowered insolvency figures for granted," Mr Scott said.
“Low insolvencies do not mean no insolvencies- it is imperative that business owners implement good cash flow management strategies before it’s too late,” he said.
Matt Nippert
Wed, 12 Oct 2011
Wed, 12 Oct 2011
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Green shoots? Business failures fall 20%
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