Worrying extrapolation: according to credit protection agencies, 40.3 percent more Viennese companies went bankrupt than in the previous year. The outlook for the rest of the year is also anything but rosy.
The various crises – from the aftermath of Corona to the raging war in Ukraine to inflation – “and the associated economic challenges are now showing their effects,” says Mag. Jürgen Gebauer, head of the Insolvency Department for Eastern Austria at the Credit Protection Association, reported quite sobering results. The current figures paint a bleak picture. Accordingly, in the first quarter of this year alone, 456 Viennese companies were affected by insolvency.
Viennese leader in a negative sense
Compared to the same period last year, this corresponds to a huge increase of more than 40 percent. The capital of Austria thus registered by far the largest increase in the number of bankruptcies of all federal states. Because the 456 bankruptcies represent more than a third of the total number of companies that went bankrupt in Austria (1279). The estimated liabilities in the individual companies have also risen explosively, namely by 28.9 percent to 58 million euros.
Gastro and construction sector suffer
Incidentally, the construction sector has been hit hardest by the current economic downturn, with 112 bankruptcies, followed by the hospitality industry with 71 bankruptcies and the car trade and its repair shops. Here, 70 companies had to close their doors for good. The largest bankruptcy to date concerns VIE-Immobilien-GmbH.
Gloomy forecast for 2023
The negative trend already observed in 2022 will therefore continue. Most people wait too long before actually filing for bankruptcy. And even if you look cautiously at the end of the year, unfortunately there is still no silver lining on the horizon. For example, the Credit Protection Association of 1870 (KSV1870) expects 2,000 business closures in the federal capital for all of 2023, across all sectors.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
