What Are The Latest Bankruptcy News From Around The Globe?
The global economy has been struggling since 2008. Banks have failed, companies have gone bankrupt, and unemployment rates have skyrocketed. In fact, the number of bankruptcies worldwide has increased by almost 50% over the last decade.
Bankruptcy is a legal procedure where a company or individual declares they cannot pay their debts. If the court agrees, then the debtor becomes legally insolvent. This means the debtor loses control of his assets and creditors take possession of them. Usually, an administrator is appointed to collect the debt. However, there are certain cases that can be filed without it, such as when a corporation’s creditor files for Chapter 11 bankruptcy.
The Global Economy
The Great Recession of 2007–2009 caused banks in Europe and the United States to collapse. It also created a recession-like environment all around the world. As a result, many businesses went bankrupt.
As you might expect, countries with more economic influence–such as the U.S., Japan, Germany, France, and the UK — had less impact on the global economy than smaller economies. For example, China’s GDP (Gross Domestic Product) contribution to the global economy was approximately $3 trillion dollars in 2014. The U.S.’s GDP contribution was about $17 trillion dollars in the same year.
China’s Economic Influence
In terms of economic influence, China’s GDP contribution to the global economy is greater than any other country. In fact, China’s GDP contribution exceeds the entire European Union’s GDP!
In addition, China’s economy is growing at a much faster rate than most other developed nations. According to the World Bank, China grew its economy by 8.9 percent in 2013. By comparison, the U.S. only grew by 2.1 percent during the same time period.