A year or two ago, there was much talk about “zombie” companies, kept alive by low interest rates, just muddling along without the cash flow to invest or generate growth. They were holding the economy back through low productivity so it would be better if they closed down, releasing staff, resources and premises for more useful deployment elsewhere.
Since early 2021, interest rates have risen from almost zero to 5% and are set to rise further, but business insolvencies, though higher than a
