Insolvencies Soar Over 40% To 36-Year High Amid Tough Economy

Business insolvencies jumped by over 41% in 2023, the sharpest increase in 36 years according to data from Canada's top financial regulator
Total insolvencies (business and consumer) were up 23.6% in 2023 compared to the previous year
High insolvency rates indicate businesses are facing a tough economic climate amid low activity and profit plummets
Consumer insolvencies alone rose 23% in 2023, largely driven by high cost of living and mounting credit card and payday loan debts
Insolvency numbers are returning to pre-pandemic levels after hitting record lows early in the pandemic due to government supports