Latest in the Wall Street Journal from Frederic Bourgeois, managing director of Coface’s U.K. and Ireland business.
Cargo ports are thinning out as the coronavirus pandemic pummels global trade. Banks and insurance companies say trade could be squeezed even more if a financial product used to facilitate it isn’t restored to health.
During the last crisis, U.K. gross domestic product dropped 4.5%, and defaults increased more than 50%, according to credit insurer Coface. Economists estimate the U.K. economy will shrink between 6% and 13% this year, which will drive insolvencies, said Frederic Bourgeois, managing director of Coface’s U.K. and Ireland business.