Bankruptcies up by over 50 percent in 2023

Number of bankruptcies rising

The number of corporate bankruptcies (adjusted for court session days) fluctuates substantially, with rapidly alternating ups and downs. The number peaked in May 2013 (911); it subsequently declined continuously until August 2017 inclusive, after which it remained fairly stable until mid-2020. It then followed a downward trend again, reaching a record low of 109 in August 2021. Since May 2022, the number of bankruptcies has continuously been higher than in the same month one year previously.

3,271 companies declared bankrupt in 2023

Over the entire year 2023, a total of 3,271 businesses and institutions (including sole proprietorships) were declared bankrupt. This was 52 percent more than in 2022, when the number amounted to 2,145. The number of bankruptcies in 2023 was still lower than in 2019, the last full year pre-pandemic.

The peak of 9,431 bankruptcies was reached in 2013 during the euro crisis. In 2021, it was at the lowest level (1,818) since the start of the survey in 1981. The fact that fewer companies were declared bankrupt during the coronavirus pandemic cannot be seen in isolation from the government emergency support.

Sharpest increase recorded in trade

In 2023, just as in the previous years, most bankruptcies were pronounced in the trade sector (682). This was followed by the construction sector with 479 bankruptcies. Both sectors are among the largest in terms of number of businesses.

The number of bankruptcies increased year on year in virtually all sectors. In absolute terms, the trade sector also recorded the sharpest year-on-year increase: by 254. In retail, wholesale and motor vehicle trade increases were 145, 105 and 4, respectively.

Construction recorded the second largest increase of 139. In the accommodation and food services sector, bankruptcies doubled from 134 in 2022 to 267 in 2023. The increase was mainly seen in food and beverage services, where the number of bankruptcies was 126 higher than in 2022. The increase was 7 among hotels and other accommodation providers.