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Austria: 21 insolvencies per working day

Updated: Feb 28, 2020


Corporate insolvencies stagnating thanks to positive economy

The final figures of Creditreform's corporate insolvency statistics for the first half of 2018 show that corporate insolvencies have decreased slightly by 1%. After the historic low of 2017 and a slight growth in the first quarter of 2018, insolvencies are now stagnating at a total of 2,685 cases. The proceedings opened have fallen by 2.4% to 1,578 and the insolvencies that were rejected due to lack of assets have increased by 1% to 1,107. In all insolvency proceedings, a total of around 9,000 jobs and 31,000 creditors have been affected. The insolvency liabilities are estimated to be approximately 1 billion Euros.

Despite there still being some major insolvencies in the first quarter (NIKI, Wienwert) it was mainly more small and micro-enterprises that became insolvent the second quarter. According to Gerhard M. Weinhofer, Managing Director of the creditors' association Creditreform: "In volatile times, the insolvency process changes very quickly. A few insolvency filings can ruin forecasts. Despite the good state of the economy, it is therefore generally advisable for every company to keep a close eye on its customers and its own liquidity. The failure of a major customer can quickly have negative consequences. "

Federal State Comparison

The biggest declines were recorded in Salzburg (-17.5%), Tyrol (-13.9%) and Upper Austria (-7.4%). By contrast, the states of Vorarlberg (+ 13.2%), Styria (+ 8.1%) and Burgenland (+ 3.7%) registered an increase in insolvencies.

The highest relative insolvency prevailed in Vienna with 11 insolvencies per 1,000 companies. On average, slightly more than 7 insolvencies per 1,000 companies were counted across Austria.

Sector Comparison

The robustness of the domestic industry has been evident for several quarters: the decline in insolvencies here amounts to 17.8%. Also positive are developments in construction which is the industry traditionally most affected with 9.2% fewer insolvencies. Nevertheless, construction industry is still the most susceptible to insolvency with 19 insolvencies per 1,000 companies. In the Austrian average, 7 out of 1,000 companies find themselves in the insolvency courts. In the transport sector as well as in the credit and insurance sector, insolvencies rose by 8.2% and 6.1%, respectively.

Conclusion for the 1st half of 2018

As early as the autumn of 2017, companies surveyed annually by Creditreform Economic Research saw optimism in 2018. This trend was confirmed in this year’s spring survey, which saw many companies reporting filled order books, the like of which had not been seen since 2011. The business climate has improved for the third year in a row. This optimism is due to strong exports, continued low financing costs and a positive domestic consumer confidence. All this has helped insolvencies to stagnate at a low level.

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