In the second half of 2023, the number of insolvency cases continues its year-on-year growth trend. July again recorded a 12% increase in bankruptcies compared to the same month in 2022.
According to data from Cosec – Companhia de Seguro de Crédito, it is small and micro companies – with a turnover of less than 500 thousand euros – that continue to register the highest number of insolvency cases.
Geographically, Porto, followed by Lisbon, are the provinces with the highest number of insolvencies.
“The development of insolvencies in Portugal took place at a time when the European economy was still affected by high rates of inflation, which deprived families of purchasing power and eroded the margins of companies, particularly some sectors of activity,” he explains. . to Cosec.
In a statement, they also revealed that Allianz Trade views Portugal ending the year with an increase in bankruptcies of about 19% compared to last year.
Although Cosec estimates for the Portuguese economy point to a GDP growth of around 2.5% in 2023, the outlook for the eurozone economy is increasingly challenged, and a cooling down in the coming months cannot be ruled out.
“The eurozone continues to face a difficult economic climate, which will have consequences for businesses. It is not possible to rule out a new hike in interest rates by the European Central Bank in September; prices continue to rise, albeit at a slower pace. Thus, major foreign markets are facing Portugal has difficulties, which over time will have effects on the various sectors of the Portuguese economy, and of course, companies will reflect these effects more. Therefore, we are seeing an increase in bankruptcies year on year, a trend that should continue to be registered, “says Vassili Christidis, CEO of COSEC.
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