The number of corporate bankruptcies in Western Europe was at its highest level last year since 2013, the credit agency Creditreform reported on Tuesday.
The agency recorded 190 449 cases, a 12.2% increase compared to the previous year, and further increases are expected.
“Three years of stagnation and economic downturn have gripped not only Germany. Europe as a whole is suffering from weak economic growth,” said Patrik-Ludwig Hantzsch, head of economic research at Creditreform.
Ongoing crises leaves no time to recover
Since the low point in 2021, with 112 686 corporate bankruptcies, the number of insolvencies in Western Europe has risen by nearly 70%, according to the analysis.
This increase is not solely due to the Coronavirus pandemic. Rising energy prices, weak demand and geopolitical uncertainties have placed a heavy burden on many companies. The ongoing crises of recent years have left businesses with little opportunity to recover or grow further.
In 15 of the 17 Western European countries included in the Creditreform analysis, insolvency figures rose year on year. France accounted for just over one-third of corporate bankruptcies in Western Europe, with 66 088 cases. This is a 17.4% increase compared to the previous year, and a grim record.
Greece records highest
The most significant increases were seen in Greece, up 42.5% to 2 012 cases, due to new legal regulations., This was followed by Ireland, up 32% to 875 cases, and the Netherlands, with a 31.7% increase to 3 782 cases.
In Germany, Europe’s largest economy, 22 070 companies filed for insolvency last year. This was a 22.5% increase compared to 2023, according to Creditreform.
“This made Germany one of the main drivers of the growth in insolvencies in Western Europe,” it said.
UK, Denmark numbers down
Only Denmark, down 11% to 6 181 cases, and the UK, down 4.8% to 25 116 cases, recorded fewer corporate bankruptcies than the previous year, according to the Creditreform overview.
Figures published by the German Federal Statistical Office are slightly lower due to a different counting method.
The construction industry was hit hardest in 2024, with a 15.4% increase in bankruptcies. Rising construction costs, high financing costs, and weakening demand intensified the economic pressure on the sector.
The number of insolvencies in the services sector also rose above average, with a 14.2% increase. – dpa
