A new Coface report warns that a fresh wave of corporate insolvencies is putting the global economy under pressure. Business bankruptcies worldwide rose 12% in the first quarter of 2026 compared with the same period last year, and Coface now expects global insolvencies to rise 6% for all of 2026, more than twice the company’s forecast at the start of the year.
The company said the main trigger was the Iran crisis that began on February 28, which drove up energy prices, disrupted supply chains and increased shipping costs. Together with higher labor costs and tighter credit conditions, those factors are squeezing corporate margins across sectors and regions.
Coface said the sharpest bankruptcy increases are expected in the United States and France, 8% each, followed by Japan at 7%, and Germany and the Netherlands at about 5%. Spain, Italy and Britain are projected to see more moderate increases of 2% to 3%.
The trend is also visible in Israel, where CofaceBDi said about 16,200 companies and businesses closed in the first quarter of 2026, up 6% year on year. Energy-intensive manufacturing industries such as chemicals, metals and paper are seen as most exposed, while services, transport, logistics, hospitality and tourism face both higher operating costs and weaker consumer demand. Over the longer term, Coface warned that automotive, agriculture, construction, ICT and pharma could also be affected. The report said governments are less able to cushion the shock than during Covid or the war in Ukraine, when fiscal support reached 2% to 4% of GDP, compared with Spain’s current 0.3% maximum. Coface Israel chief executive Michael Nachmanovitch said firms should reassess trade credit exposure, monitor customers and suppliers closely, and use tools to reduce nonpayment risk and protect cash flow.
