Credit insurers Acredia and Allianz Trade are expecting an 11 percent increase in company bankruptcies in Austria. Insolvency dynamics are slowing down in global comparison.
Vienna (OTS) – Austria recorded one of the strongest increases in corporate insolvencies in Europe last year. This race to catch up seems to be over. In the current insolvency forecast by the credit insurer Acredia and Allianz Trade, an increase of around 11 percent is expected in Austria this year, which corresponds to 5,310 company bankruptcies. A trend that is likely to continue in 2024, the experts assume a plus of four percent.
“The slowdown in insolvency dynamics coincides with the signals we are getting from the economy,” says Gudrun Meierschitz, board member at Acredia. “The supply chain problem has eased recently and inflation is slowly falling. Nevertheless, many companies expect falling margins. In particular, the high energy prices and the tight financial market are causing headaches.”
Increasing costs of goods and wages put an additional strain on companies’ profitability. The construction and construction-related trades, trade and tourism are particularly at risk. “Companies with high inventories in particular groan under the costs that arise from the capital commitment,” says Meierschitz. “In addition, there is a risk that companies with weak capital will run out of breath in view of the marathon in the turnaround in interest rates.”
New push expected worldwide, especially in Europe
While the insolvency dynamic in Austria is declining, it is increasing worldwide. After an increase of 17 percent last year, a global increase of 21 percent in company bankruptcies is expected for 2023.
The global forecast for insolvency in 2023 is thus still below the value for 2019 (-5 percent vs. 2019). Austria, on the other hand, is expected to be higher (+6 percent vs. 2019). After another surge of four percent in 2024, global insolvency activity should have largely returned to normal.
In Europe, the increase in corporate insolvencies of around 24 percent is more pronounced than the global average. This is mainly due to the sharply increasing numbers in the Netherlands (+52 percent), France (+41 percent), Ireland (+30 percent) and Italy (+25 percent). Many European countries will already significantly exceed the pre-crisis level in 2023, above all Spain (+75 percent compared to 2019), Great Britain (+29 percent compared to 2019), Denmark, Ireland and Switzerland (+18 percent compared to 2019) and France (+15 percent vs. 2019).
“Austria is in a good position compared to other European countries,” says Meierschitz, “this year the increase in company bankruptcies is likely to be lower than last year. However, the insolvency dynamic has meanwhile adjusted to global events. It is not a reason to panic – but it is a reason for caution and for even more careful accounts receivable and liquidity management.”
The full study can be found at Acredia.at
About the Acredia Group
Acredia is Austria’s leading credit insurer and protects outstanding receivables at home and abroad with a total value of almost 33 billion euros. Acredia is a subsidiary of Oesterreichische Kontrollbank AG and Allianz Trade, the world market leader in credit insurance.
In 2022, the Acredia Group had a total turnover of 97.6 million euros. As part of the United Nations Global Compact, Acredia has voluntarily committed to aligning its strategy and business activities with the universal principles of human rights, labour, the environment and anti-corruption and to taking measures to advance social goals. www.acredia.at
Questions & contact:
Sabine Stepanek, press contact for Acredia Versicherung AG
Tel.: +43 (0)5 01 02-2151
E-Mail: sabine.stepanek@acredia.at
Susanne Wegscheider, agency com_unit
Mobil: +43 664 280 16 18
Email: susanne.wegscheider@comunit.at