Bankruptcies and defaults rose sharply in all sectors of the Eurozone’s economy last year, statistics agency Eurostat reported, leaping up 26.8 percent in the final quarter compared to the previous three months.
The annual number was the highest since the agency began tracking the data in 2015, it said.
Also in 2022’s last quarter, new business registrations declined by 2 percent, year over year.
The sharp spike in energy prices that pushed inflation higher set off a “cost of living crisis” that drove companies into default.
Bankruptcy increases by sector through 2022:
● Transportation and storage up 72.2 percent
● Lodging and food services up 39.4 percent
● Education, health, and social activities up 29.5 percent
In last year’s final quarter, bankruptcies among lodging and food service businesses rocketed up a staggering 97.7 percent.
TREND FORECAST: The higher the EU raises interest rates, the higher the rate of business bankruptcies.
If Russia’s war in Ukraine becomes even more intense or turns catastrophic, the rate of business failures in Europe will skyrocket.