Bangalore: The figure of failed companies around the globe in business is predicted to rise by 3 percent in 2012 as predicted by an Insurance company, Euler Hermes. The report states that, European companies will be the most suffered companies because of the economic trim down.

Ludovic Subran, Chief Economist of Euler Hermes expects that more number of failures will rise is the Eurozone which will go up to 12 percent and a 19 percent rise in Mediterranean countries that have been "very weakened by the crisis." He expects that GDP growth of business companies to witness a slowdown of 2.7 percent this year from 3 percent in 2011.

In 2012, the Eurozone economy is said to decline 0.3 percent from 1.6 percent of last year. "Growth is running out of stream in emerging markets and getting bogged down in debt-submerged markets. The euro zone, where demand is depressed and prospects for exports are reduced, is clearly at the epicenter of the crisis", says Subran.

The global economic recovery of second half of 2011 was not promising. Many signs showed that the growth is weak. JP Morgan Global All-Industry Output Index shows that downsizing risks to growth remain high. These risks are nothing but the debt crises in Europe and the U.S. The D&B Global Insolvency Index expects the growth to remain numb for next couple of quarters, raising the risk of corporate insolvency in many economies, especially in the Euro area and North America.