Austrian company bankruptcies rise to highest rate in 15 years

(MENAFN) Recent official data from Austria highlights a sharp rise in company bankruptcies during the first half of this year, marking the highest number recorded in 15 years. According to the report by AKV Europa, a credit evaluation organization, there were 2,098 bankruptcies in the first six months of 2024, a striking increase of 35.8 percent compared to the same period in the previous year. This surge has been accompanied by a dramatic rise in the total liabilities of bankrupt companies, which climbed to 11.5 billion euros (USD12.55 billion). This figure represents a nine-fold increase from the previous year, largely driven by significant bankruptcies such as those of the Signa Group and the branch of American electric vehicle manufacturer Fisker.

Economists attribute the high bankruptcy rate to a combination of factors including reduced consumer and investment spending, a persistent industrial recession, elevated interest rates, rising unemployment, stringent lending conditions, and a modest decline in GDP during the first half of 2024 compared to the previous year. These economic pressures have collectively contributed to the challenging financial environment faced by businesses in Austria. 

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