New Zealand businesses currently enjoy some of the lowest insolvency rates in the world, with just 670 business failures in the September quarter compared with 850 over the same period in 2010.
According to the Dun & Bradstreet Global Insolvency Index, that puts us as the second-best performing economy after Latvia among the countries D&B monitors for the quarter, with the number of insolvent businesses dropping 20 percent in the last year.
The agency’s local general manager John Scott said this could largely be attributed to strong commodity prices and low interest rates.
But he warned Kiwi firms not to be complacent.
Business conditions in Australia were a cause for concern, with almost 1,000 failures in July alone.
He said Australia was now on par with Eurozone countries such as Italy and Spain despite its healthy mining industry.
“Given that Australia is our largest two-way trading partner and accounts for $17.7 billion in total trade, it is crucial that kiwi businesses do not take our lowered insolvency figures for granted.”