According to Eurostat, business insolvencies in the European Union reached their highest level in the fourth quarter of 2022 since data began to be published in 2015. Their number increased by 26.8% compared to the previous quarter and reached peaks of 72.2% in the transport and logistics sector, 39.4% in accommodation and catering. This rate rises to 29.5% in health and education services.
Compared to the pre-Covid period in the last quarter of 2019, the number of bankruptcies is up in almost all economic sectors, with the strongest increases observed in accommodation and catering (97.7%), transport and logistics (85.7%). Only three sectors experienced a decline in insolvencies over this period: industry (–17.6%), construction (–9.2%), information and communication (–4%).
According to the Banque de France, 41,020 business failures were recorded in 2022 in France, up 48.7% compared to 2021. The number of failures, however, remained last year at a lower level of 19.8% compared to that recorded in 2019 (51,145 failures). It had fallen to the exceptionally low levels of 32,184 in 2020 and 27,592 in 2021 thanks to the financial aid from the State (PGE, deferment of tax and social debts, etc.) put in place during the pandemic and which had made it possible to avoid payment defaults.
With the end of aid and in a context of rising interest rates, high energy prices and economic slowdown, a sharp rebound in the number of business failures is expected in 2023. According to the leader of the credit insurance Allianz Trade, it could increase in France by more than 40% to reach 59,000.
