Business bankruptcies decline while registrations rise in EU

In the fourth quarter of 2024, the number of bankruptcy declarations among businesses in the European Union fell by 0.7% compared to the previous quarter. At the same time, business registrations increased by 2.6%, reflecting overall economic resilience and growth across all sectors.

Data indicate that business registrations rose in every sector of the economy compared to the third quarter. The most significant increases were seen in transportation and storage, which grew by 5.7%, followed by industry at 3.5%, and the information and communication sector at 2.3%. The construction sector recorded the smallest rise, with a 0.9% increase in registrations.

While bankruptcies declined in most sectors, certain industries experienced notable increases. The education and social activities sector saw a significant 17.7% rise in bankruptcy declarations, while industry recorded a smaller increase of 1.6%. Conversely, the steepest declines in bankruptcies were observed in the information and communication sector, which dropped by 25.6%, accommodation and food services, which fell by 12.2%, and transportation and storage, which saw a 10.1% decrease.

These trends highlight shifting dynamics in the EU business landscape, with growth in new business formations and a decline in insolvencies across most industries, despite challenges in specific sectors.

Source: eurostat