Trade credit insurer Allianz Trade expects business insolvency numbers to rise this year and next, with the worst impacts in Asia.

Most Asian economies are recording slightly more company failures than expected this year, according to the latest Allianz Trade Insolvency Report. Numbers are up 33% in Hong Kong and 22% in Singapore. Australian insolvency rates are at a 10-year high.

Economic slowdown in China – with a soft domestic economy and export challenges – will fuel a forecast 9% increase in business failures there.

And US import duties could push up insolvencies among exporters, Allianz Trade CEO Aylin Somersan Coqui says.

“As mitigation strategies wear thin and secondary effects kick in, the trade war’s effects could soon test corporates’ resilience,” she said.

Other factors putting pressure on businesses include subdued economic growth, particularly in the US and eurozone; tight financing conditions, with persistently high interest rates and limited credit supply; and weaknesses in sectors such as construction and motor.