1718 insolvencies

Company bankruptcies at an all-time high at the start of the year

Numerous businesses will have to close their doors for good this year.

(Bild: stock.adobe.com)

The number of company bankruptcies in the first quarter of this year rose to its highest level since 2019 - the start of the insolvency statistics. At 1718 insolvencies, there were around 30 percent more cases in the first quarter of 2024 than in the same period of the previous year and around a fifth more than in the previous quarter.

A comparison of the sectors shows that the highest number of insolvencies in the first quarter of 2024 was recorded in financial and other services (397), construction (330), trade (298) and accommodation and food services (242), although the number of insolvencies generally depends heavily on the number of companies active in the individual economic sectors, according to Statistics Austria. The information and communication (62) and manufacturing (108) sectors recorded comparatively few insolvencies.

At the same time, intentions to set up a company have decreased. Registrations of legal entities fell by around 13% year-on-year to 16,053 in the first quarter. However, there were around 9% more registrations than in the previous quarter. Registration is to be understood as a declaration of intent and does not necessarily mean that economic activity will actually commence. Nevertheless, registrations are an important early indicator of economic development, according to Statistics Austria.