During the second quarter of 2023, European Union (EU) businesses experienced a consistent rise in bankruptcy declarations for the sixth consecutive quarter. In comparison to the preceding

quarter, the number of bankruptcies surged by 8.4%, marking the highest level since data collection began in 2015.

Regarding the registration of new businesses, there was a slight decline of 0.6% in the second quarter of 2023, following a 2% increase in the first quarter. Notably, business registrations have generally exceeded figures from the 2015-2022 period since 2023.

This information is derived from Eurostat's data on business registrations and bankruptcies, with monthly data being incorporated into the database for countries that voluntarily transmit monthly information since February 2023.

Declarations of bankruptcies experienced the most significant uptick in the accommodation and food services sector in Q2 2023. Across all sectors of the economy, the number of bankruptcies increased in the second quarter of 2023 compared to the previous quarter. Accommodation and food services (+23.9%), transportation and storage (+15.2%), and education, health, and social activities (+10.1%) reported the highest increases in bankruptcy declarations during this period.

In comparison to the pre-pandemic fourth quarter of 2019, a majority of economic sectors witnessed higher numbers of bankruptcy declarations in the second quarter of 2023. The sectors with the most substantial increases compared to Q4 2019 were accommodation and food services (+82.5%) and transportation and storage (+56.7%). Photo by Carlos Goulão, Wikimedia commons.