Number of Insolvencies Has Increased Significantly in 2024

"This is the highest value since Statistics Austria began recording in 2019," says Statistics Austria Director General Tobias Thomas in the release. However, company formations have decreased.

"The ongoing economic crisis and the great uncertainties are impacting bankruptcies and slowing down company formations," says Thomas. In the last three months of 2024 alone, 1,713 companies filed for bankruptcy. "The service sector was particularly affected, followed by the construction industry and trade."

Five Percent Fewer Company Registrations

For 2024, the statistics authority also recorded 61,779 registrations of legal entities. This was about 3,000 or five percent less than in 2023. A registration is not synonymous with a company formation, emphasizes Statistics Austria. Nevertheless, the "registrations are an important early indicator for economic development."

In the fourth quarter (October-December 2024), there were 461 bankruptcies in the "financial services/other services" sector, followed by trade (300 bankruptcies) and construction (267). At the same time, there were 4,048 registrations in the "financial services/other services" sector during the quarter. In "personal services," there were 3,214 registrations and in trade 2,595 registrations.

(APA/Red)

This article has been automatically translated, read the original article here.