Corporate bankruptcies rose in the first quarter of this year to the highest level since 2019 – the start of insolvency statistics. With 1,718 bankruptcies in the first quarter of 2024, there were about 30 percent more cases than in the comparable period of the previous year and about a fifth more than in the previous quarter.
Comparing sectors, most bankruptcies in the first quarter of 2024 occurred in financial and other services (397), construction (330), retail (298) and accommodation and catering (242). Insolvencies are generally highly dependent on the number of companies active in the individual economic sectors. There were relatively few bankruptcies in the areas of information and communication (62) and the production of material goods (108).
At the same time, intentions to start a business have decreased. Registrations of legal entities fell by approximately 13 percent to 16,053 in the first quarter compared to the same period last year. However, there were about 9 percent more registrations than in the previous quarter. Registration should be understood as a declaration of intent and does not necessarily mean that economic activity will actually commence. Nevertheless, according to Statistics Austria, registrations are an important early indicator of economic development.
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.
