Bankruptcies in Portugal increased by 18% in 2023 on 2022 with almost 2,000 companies going under.
On the other hand, 2023 closed with a record number of new companies created (51,320), exceeding the 50,000 watershed for the first time since records began with 2,032 more companies created than in 2022.
But bankruptcies increased in 2023 with 1,917 companies in the process of insolvency, an increase of 18% compared like-for-like according to data from the National Statistics Institute (INE).
The upward trend in bankruptcies affected almost all sectors, but accommodation and catering, agriculture and other natural resources, and energy and environmental companies were the only sectors in which companies managed to buck the trend, closing the year with less insolvencies.
In terms of sectors, industry took the largest hammering in 2023 with 47 companies going through a process of insolvency, (+47%).
The INE data also reveals that micro and small companies with a turnover of €500,000 continue to suffer the greatest number of insolvencies. In geographical terms Lisbon and Porto were the districts that suffered the largest number of cases.
According to José Pedro Pais, a partner in the company Capitalizar, a financial and tax advisory company specialising in company restructuring, “the increase in company insolvencies is a clear sign that companies in Portugal are facing significant financial difficulties. However, It is fundamental to understand that insolvency is not the only path to follow. A timely financial diagnostic and specialised help are vital in turning around companies.
“Identifying and approaching financial problems proactively is fundamental to avoid a situation of insolvency which otherwise becomes inevitable. With the right guidance and suitable strategies companies can overcome their financial difficulties and achieve long-term success,” he added.
Essential Business, 19 de janeiro de janeiro 2024.