Saturday, 15 March 2025
The number of bankruptcies in Austria soared by approximately 23% in 2024, reaching 6,545 cases, according to preliminary data from Statistics Austria. At the same time, the number of new business registrations declined by around 5% compared to 2023, signaling a challenging economic environment for entrepreneurs.
“The ongoing economic crisis and significant uncertainties are driving up insolvencies while dampening business formation,” said Tobias Thomas, Director General of Statistics Austria. “The sharp rise in bankruptcies at the end of 2024 underscores the difficult conditions facing businesses.”
In the fourth quarter of 2024 alone, 1,713 enterprises filed for insolvency—about 21% more than in the same quarter of 2023 and 12% more than in the previous quarter. This marks the highest number of bankruptcies recorded since Statistics Austria began tracking insolvencies in 2019. The service sector was particularly affected, followed by construction and trade.
Business Failures Widespread Across Industries
Bankruptcies increased across nearly all sectors in 2024. The largest spikes were seen in manufacturing, financial services, and personal services. Compared to the third quarter of the year, the most significant increases were observed in manufacturing, wholesale and retail trade, and construction.
In the fourth quarter of 2024, the highest number of bankruptcies occurred in:
• Financial services/other services: 461 cases
• Wholesale and retail trade: 300 cases
• Construction: 267 cases
• Accommodation and food services: 222 cases
Sectors with relatively lower bankruptcy rates included information and communication (53 cases) and transportation and storage (115 cases). Compared to the fourth quarter of 2023, the wholesale and retail trade sector surpassed construction in terms of insolvency filings.
Business Registrations Decline Amid Uncertainty
New business registrations also dropped in 2024, with a total of 61,779 legal unit registrations—approximately 3,000 fewer than in 2023, marking a 5% decline. In the fourth quarter alone, there were 13,812 new registrations, reflecting a 10% decrease compared to the same period in 2023 and a 7% drop from the third quarter of 2024.
The most registrations were recorded in:
• Financial services/other services: 4,048
• Personal services: 3,214
• Wholesale and retail trade: 2,595
Meanwhile, the lowest registration numbers were seen in transportation and storage (641) and construction (725).
Although registering a legal unit does not necessarily translate into an active business operation, it serves as an early indicator of economic trends. The decline in registrations suggests continued caution among entrepreneurs amid ongoing economic challenges.
With bankruptcies at their highest level since record-keeping began and business formation slowing, Austria’s economic landscape in 2024 remains under pressure, raising concerns about long-term stability and growth in key sectors.
Source: Statistik Austria
