Westward Business Collapses Crystallize, Sparing Denmark and the UK
Western European Corporate Bankruptcies Surge Notably - Business collapses in Western Europe surge once more
Hey there! You might've heard that the old continent isn't doing so hot lately. Economically speaking, that is. Patrik-Ludwig Hantzsch, head honcho at Creditreform Economic Research, stated emphatically, "It's not just Germany that's struggling." Europe's mixed bag of economies is simmering in a stew of weak economic recovery.
Hantzsch threw out some alarming numbers about business insolvencies skyrocketing in Western Europe. No, these aren't mere duplications of the COVID-19 pandemic. These are the real deal. In fact, 15 out of the 17 Western European countries Creditreform scrutinized witnessed a surge in corporate bankruptcies, with the exceptions being Denmark and the UK.
On the hotspot list? Ireland, Greece, and the Netherlands, boasting an escalating insolvency rate. In the former two, the numbers have gone through the roof, while the Dutch businesses seem to be battling an insurmountable wave. By the way, Germany's insolvencies jumped up an eye-watering 22.5 percent, while France isn't far behind with a 17.4 percent increase.
What's the deal with these unfortunate incidents, you ask? The construction industry shanties under the weight of these insolvencies, reporting a substantial 15.4 percent rise. High construction costs, steep financing costs, and waning demand have been pinpointed as the main culprits. As for why companies are crumbling under pressure, the credit agency chimes in, "It all boils down to increased economic strain."
Shift your gaze towards Central and Eastern Europe, and you'll find more of the same narrative unfolding. Creditreform reports that numerous countries in the region have witnessed a rise in corporate bankruptcies. Some of the most notable are Poland, Latvia, Slovenia, Lithuania, and Estonia. But here's a wild card: Hungary, after a meteoric increase in 2022 and 2023, has displayed a significant downturn, which complicates the overall picture.
The American continent hasn't been completely immune to the avalanche of bankruptcies. A 16.6 percent increase plagues the insolvency numbers in the USA. Creditreform explains, "Even with moderate economic growth, inflated interest rates and diminishing consumer spending have been suffocating businesses." However, the numbers in the US still trail behind pre-Corona levels of 2018 and 2019.
- Creditreform
- Business insolvency
- Company insolvency
- Credit agency
- Westward
- Europe
- Germany
- Economic stagnation
- Central and Eastern Europe
- Construction industry
- Geopolitical uncertainties
- Hungary
- USA
- COVID-19 pandemic
- In contrast to the trend in most Western European countries, Denmark and the UK have managed to avoid a surge in corporate bankruptcies, according to Patrik-Ludwig Hantzsch, head of Creditreform Economic Research.
- The construction industry has borne the brunt of business insolvencies, with a notable 15.4 percent rise reported in this sector, as cited by Creditreform.
- Factors such as high construction costs, steep financing costs, and dwindling demand have been identified as the major causes for the construction industry's struggles, as determined by the credit agency.
- Since the onset of the COVID-19 pandemic, business insolvencies have spiked in Western Europe, with 15 out of the 17 Western European countries surveyed by Creditreform experiencing an increase in corporate bankruptcies.
