New business registrations in the European Union rose in the fourth quarter of 2021, after a slight contraction in the third quarter. The number of bankruptcies, on the other hand, continued the downward trend in the past quarter, reports the European statistical office Eurostat.
The number of new company registrations in the EU increased by 1.6 percent and the number of bankruptcies fell by 0.7 percent. In the euro area, the number of new businesses increased by 1.2 percent and bankruptcies fell by 1.6 percent.
Poland, Estonia and Italy saw the strongest growth in new businesses last quarter, while Ireland, Slovakia and Bulgaria showed the strongest declines. The number of bankruptcies declined most sharply in Romania, Estonia and Spain. According to Eurostat, Denmark, Hungary and the Netherlands showed the strongest increase in the number of bankruptcies in the fourth quarter compared to the third quarter.
The number of new business registrations in the EU has generally increased from 2015 to the end of 2019. The trend changed with a decline in the first and second quarter of 2020 due to the outbreak of the corona pandemic. All in all, the new company registrations in 2021 will be higher again than in the period 2015 to 2019.
With regard to the number of bankruptcies, there was a downward trend between the first quarter of 2015 and the fourth quarter of 2016. Thereafter, the number of bankruptcies increased until the third quarter of 2019. In the first and second quarter of 2020, however, there were significant declines. This decrease in the number of bankruptcies can be explained by the government measures to support companies during the onset of the corona crisis, which helped companies avoid going bankrupt.
Thereafter, the number of bankruptcies increased for three consecutive quarters until the first quarter of 2021. For the whole of 2021, however, the number of bankruptcies is significantly below the pre-crisis level in 2019.
More new businesses and fewer bankruptcies in EU
Source link More new businesses and fewer bankruptcies in EU