Business insolvencies in Morocco are on track to rise again in 2025, following an already tough year in 2024, says Allianz Trade’s latest Global Insolvency report.
The international insurance firm that tracks financial data from millions of companies said that Morocco is expected to see a 7% increase in business failures next year, in line with global trends.
The company’s forecast paints a worrying picture, predicting a 6% rise in worldwide business insolvencies in 2025 and another 3% in 2026. This follows a 10% jump in 2024, showing that companies across the globe are struggling to stay afloat.
Morocco is no exception. In 2024 alone, business insolvencies in the country increased by 10%, bringing total cases to an estimated 16800—more than double the pre-COVID average from 2016 to 2019.
While 2025 is expected to bring another increase, insolvencies in Morocco are projected to stabilize at this higher level in 2026.
In South Africa, the report predicts that the steady drop in business insolvencies since 2020 will start to slow down by 2026.
This slowdown is due to the delayed impact of high interest rates, which have been rising sharply since 2022, along with slower economic growth. It’s worth noting that in 2024, business insolvencies hit their lowest level in 35 years.
Job losses linked to business failures are also set to rise in 2025, with an estimated 2.3 million jobs directly at risk worldwide, 120000 more than in 2024. The trend is expected to continue in 2026, though at a slower pace, with an additional 20000 jobs affected.
These figures come from an analysis of how many workers businesses typically employ, how many companies shut down completely (about 72%), and how many lay off staff during restructuring (around 32%).
Western Europe is expected to be hit the hardest, with 1.1 million jobs at risk, followed by North America with 450000. Central and Eastern Europe could see around 370000 job losses, while Asia faces roughly 320000, continuing an upward trend seen since 2022.
Some of the most vulnerable industries include construction, retail, and services, where financial struggles and slow payments have made it harder for businesses to stay afloat.
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