Insolvencies in Portugal are expected to skyrocket by 16% next year – Empresas
The number of insolvencies among Portuguese companies is expected to skyrocket again, increasing by almost 16% next year. The forecast is advanced this Monday by the fair Co – Companhia de Seguro de Créditos, which warns companies of “serious difficulties” after the end of state support for post-pandemic reform.
“In recent years, the pandemic has led the Government to implement several mechanisms to support companies, which will have allowed to limit the number of insolvencies”, indicates Cosec, in a statement sent to newsrooms. But, as “most aid did not end at the end of 2021”, an increase in the number of insolvencies is now expected.
Cosec predicts that insolvencies will increase by 2% this year. The pace of increase will be from more expressive with the same increase of the highlight month from “7% compared to last year”. In 2023, insolvencies are expected to rise by 16%.
“The effects are already visible, for example, in the rise of 19 Special Revitalization Processes registered, a clear sign of the increase in the number of companies that are facing difficulties in fulfilling their obligations”, explains Maria Celeste Hagatong, chairman of the Board of Directors of cosec.
The economic uncertainty caused by the war over Ukraine and the rise in bankruptcy for companies which, according to Cosec, could lead to an increase in bankruptcies.
In the Euro Zone, a 12% increase in insolvencies is expected this year, compared to 2021, and 16% for 2023. France is, the main European economies, the country where the most important insolvencies year, compared to 10% in Germany). On a global scale, the forecast for growth in insolvencies is 10% this year and 14% in 2023.