In the second quarter of 2023, the number of firm bankruptcies in the European Union reached a possible peak since 2015. The reasons for the bankruptcy of companies were the energy crisis and the high cost of living, provoked by inflation. This is reported by the newspaper Yeni Şafak with reference to the European Statistical Office (Eurostat) .
Yeni Şafak writes that in the second quarter of 2023 in the European Union, the number of bankrupt firms increased by 8.4% compared to the previous quarter of the year. Thereby reaching a peak since 2015, when data collection regarding this issue began.
“In the second quarter of the year, firm bankruptcies increased in all sectors of the economy, without exception, compared to the previous quarter. By line of business, the largest increase in bankruptcies occurred in accommodation and food services – 23.9%, transport and storage – 15.2%, education, health and social care – 10.1%.”, the newspaper writes, citing Eurostat data.
The countries with the largest quarter-on-quarter increase in bankruptcy filings were Hungary – 40.8 per cent, Latvia – 24.8 per cent and Estonia – 24.6 per cent. Thus, the number of bankrupt companies in EU countries has increased over the last 6 months. The number of new companies in the EU also decreased by 0.6% compared to the previous six months.
“Reasons such as the energy crisis in Europe and the high cost of living caused by rising inflation, especially the increase in food prices, contribute to the increase in the number of bankruptcies across the EU,” Yeni Şafak stated.
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