More businesses went bankrupt again in June, after the number of bankruptcies also increased in May. This is evident from the data published by Statistics Netherlands. The number of bankruptcies rose for the third consecutive month. In the first half of 2023, the number of bankruptcies was almost 60% higher than in the same period of 2022. According to CBS economist Marjolijn Jaarsma, since October 2022 we have been at a higher level than in previous crisis years of the crown.
According to Statistics Netherlands, 48 more companies closed their doors in June than in May, an increase of 19%. In June 2023, bankruptcies exceeded 300 for the first time in about three years. ‘We see for the first time in three years that we have exceeded three hundred bankruptcies. We are still well below the peak ten years ago, but also below the historical average,’ says Jaarsma.
Trade and construction bleed
As in recent months, most of the victims were in the trade. With 63 companies, this sector recorded a 40 percent increase compared to May. In second place is construction with 41, against 43 the previous month. Both sectors are among the largest industries. Relatively speaking, most of June’s bankruptcies occurred in the hospitality industry. There, 26 companies went bankrupt, up from 32 in May.
Asked if there’s a trend, Jaarsma says: ‘We’ve seen the number of bankruptcies fluctuate a bit in the first quarter of this year, but now we’ve actually had the third consecutive month that the number of bankruptcies has increased.’
According to Jaarsma, the increase may be partly due to the fact that the number of bankruptcies has been historically low due to the coronavirus support provided by the government. It is also possible that companies are now facing inflation and high rental costs. And last but not least, companies still have high debts due to the corona crisis.
“Now we really have the third consecutive month where the number of bankruptcies has grown”
‘Among other things, they suffer from high inflation which affects all types of processes. The construction sector, where we see a relatively high number of bankruptcies, is feeling the effects of the stagnation of the real estate market’. Jaarsma also points to the decline in producer confidence.
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
