Nova Credit Announces Estimated Bankruptcy Rate 0.176% in Q4 2022
According to the latest macro-economic data (as of 6 January 2023) and the unemployment rate (provisional figures), NOVA announces the latest estimated bankruptcy rate for the next 12 months at 0.176%, which is equivalent to 9,856 bankruptcy cases by the end of December 2023 for 5.6 million credit population in Hong Kong. (LinkedIn Post)
Calculation of this estimated bankruptcy rate is based on the latest macro-economic data up to 6 January 2023. According to the statistics released by the Census and Statistics Department, the year-on-year percentage change of GDP as of Q3 2022 is -4.5%, and the unemployment rate decreased from 4.3% as of July 2022 to 3.7% as of November 2022. Although GDP has contracted year-on-year for three consecutive quarters, in Q3 the epidemic has begun to slow down and the labour market has further improved, most of the negative impact of GDP in estimated bankruptcy rate has been offset by the impact of unemployment rate.
We will continuously monitor the macro-economic environment and its impact on the number of bankruptcy cases accordingly, and leverage innovative technology for sharing valuable findings with the banking sector for making more accurate and timely business decisions.