The trend towards the falling number of company liquidations and insolvencies has continued despite the fact that the economy has entered a recession. The total number of liquidations was down almost 30% in May year on year while the number of insolvencies fell by almost 23% in April year on year, according to the latest data from Statistics SA. "While the weaker growth trend in both these indicators suggests that, on the face of things, both companies and individuals have shown impressive resilience from the weaker economic climate, depressed job market and falling company profitability, the lag with which a company and/or an individual applies for bankruptcy/insolvency can be lengthy and so can take a fair amount of time to show up in this data," explained BNP Paribas SA economist Jeff Schultz. The data is also quite volatile from month to month. The largest annual decrease in total liquidations in May 2017 occurred in the financing, insurance, real estate and business services se...
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