Business Insolvencies in Europe
Creditreform is an international business credit information provider with offices in 21 European countries and China. They provide credit reports on over 30 million businesses and are a Business Credit Reports partner.
Each year, Creditreform’s Economic Research Unit publishes its long-running anticipated report on corporate insolvencies in Europe. The survey takes a look at corporate stability in Europe with regard to insolvency and the threat it represents.
The 2014 report shows that corporate insolvency in Western Europe remains high and is still rising slightly. In 2013, Western European companies filed bankruptcy 192,340 times, a 1.1% increase over 2012. The biggest contributors to the increase were Norway (19.7%), Italy (15.9%) and Spain (14.6%). While the overall trend was slightly negative, eight countries exhibited declining insolvency rates, led by Ireland (-18.9%), the UK (-9.9%) and Germany (-9.1%).
In Central and Eastern Europe, the picture is slightly worse, with an overall increase of 3.9% to a total of 100,984. This number is nearly double that seen in 2010. Hungary accounted for nearly half of those failures, but its overall number actually declined 5.7% from the previous year. Estonia and Latvia were the other two countries in this region to register notable declines. The biggest increases were seen in Bulgaria, Slovenia and the Czech Republic.
In the United States, the study found that insolvency rates eased last year, dropping 17% to its lowest level since 2007 with a total of 33,212 companies failing. Thanks in part to the Federal Reserve’s policy of cheap money, the U.S. economy grew 1.6% in 2013.
To download the full report, which describes the drivers of these numbers and breaks them down by industry, along with other financial metrics, click here.