Private bankruptcies in Austria: a paradoxical development in the crisis year!

Private bankruptcies in Austria: a paradoxical development in the crisis year!

In a troubling development, the current payments in Austrian private bankruptcy statistics show a slight decline. In 2024, the total number of private bankruptcies was registered on just 9,634 procedures, which is 1.0% less than in the previous year. While this decline feels positive, another look at the corporate bankruptcies was rather sobering. Creditreform reports that the company insolvencies have risen sharply, while many Austrians have not yet affected a recession despite persistent economic uncertainties. This paradoxical situation is influenced by various factors, including a stable labor market and state support measures. However, Gerhard M. Weinhofer from Creditreform warns that this positive development may not be permanent. "The economic crisis will also reach the mass of the population if politics does not counteract quickly," he explains, emphasizing the possible consequences of job losses.

structural change and workplace reduction in Germany

topics that also affect neighboring countries: in Germany, the processing industry faces a profound structural change. According to economic expert Jens Südekum, the situation in the core industry, including automotive and mechanical engineering, is alarming. "We are already experiencing de-industrialization," he says, referring to the drastic job losses in the metal, electrical and steel industry. Current declines at companies such as Volkswagen and Thyssenkrupp underline the urgency of this crisis. The IFO index in the processing industry has dropped to the lowest level since June 2020, which brings not only the companies but also the employees into a precarious situation.

With increasing pressure on the German economy, directly affected sectors must also carefully maneuver the challenges. The job cuts could also have an impact on the Austrian market landscape. After all, the current decline in private bankruptcies could turn out to be at short notice, especially if the economic framework does not improve. In this critical phase, rapid political intervention is urgently necessary to ward off the impending crisis, as indicated by Weinhofer.