Wave of Bankruptcies Continues to Sweep Across the Country

The number of corporate insolvencies in Austria stands at 5,145 after the first three quarters this year, which is 7 percent higher than the same period last year.

Company Insolvencies Up Seven Percent After Three Quarters

In the third quarter alone, there were 1,626 bankruptcies, 6.5 percent more than in the previous year's period. This indicates that the momentum has somewhat slowed over the course of the year, reported Statistics Austria. The service sector was primarily affected, followed by trade and the construction industry.

The most insolvencies in the third quarter were in financial services/other services (468), trade (274), construction (245), as well as accommodation and gastronomy (203). However, the number of insolvencies also fundamentally depends on the number of companies active in each economic sector.

Registrations as Declarations of Intent

The most registrations, totaling 15,813, occurred in July, August, and September (2024: 15,761) in the service sector. Registrations are to be understood as declarations of intent for a business start-up, not as actual start-ups. Nevertheless, according to the authority, they are an important early indicator of economic development. The most registrations in the third quarter were in the areas of financial services/other services (4,830), personal services (3,474), and trade (2,879). The number of registrations was significantly lower in the areas of transport (687), construction (840), and manufacturing (993), according to the statistics authority.

Up to 7,000 Bankruptcies Expected

In the entire year of 2024, there were around 6,550 insolvencies, with only the years 2005 (just over 7,000) and 2009 (6,900) having more, according to KSV data. The creditor protection associations expect a slight upward trend this year to 6,500 to 7,000 bankruptcies.

(APA/Red)

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