2.1.7 Economic update

16:40

Economic insights on insolvency, restructuring, and trade disruptions

Insolvency and restructuring play a vital role in reallocating resources to more efficient uses—an essential economic principle. Effective processes mitigate moral hazard, manage uncertainty, and balance bargaining power through robust institutions. However, global trade tensions and tariffs risk distorting these signals, fostering inefficiency, increasing uncertainty, and intensifying risk-taking. Such disruptions challenge traditional frameworks of priority and institutional roles, potentially reshaping insolvency dynamics. These developments carry implications for global and regional growth, interest rates, inflation, and the speed of market adjustments—key variables influencing the restructuring profession’s capacity to respond effectively to economic shocks and systemic imbalances.

Speaker

Dr Gordon Cordina

Leading Economist and Co-Founder,

E-Cubed Consultants Ltd