Austria's economy is in decline: bankruptcies are increasing dramatically!

Austria's economy is in decline: bankruptcies are increasing dramatically!

The number of corporate bankruptcies in Austria recorded a worrying increase of 7% in the first three quarters of 2025 compared to the previous year. A total of 5,145 companies filed for bankruptcy, with the service sector being hit hardest. The total number of expected bankruptcies for the entire year could be between 6,500 and 7,000, which illustrates the high risk for numerous companies. vienna.at reports that 1,626 bankruptcies were identified in the third quarter alone, representing an increase of 6.5% compared to the previous year.

The insolvencies in the area of ​​financial services/other services are particularly noticeable, with 468 cases, as well as in retail and the construction industry. In comparison, there are 203 bankruptcies in the catering and accommodation sectors. This data can be attributed, among other things, to the ongoing challenges that companies face in a changing economic environment. the press also points out that 1,727 bankruptcies were reported in the second quarter of 2025 alone, an increase of 9.3% compared to the previous year, but a decrease of 3.8% compared to the first quarter.

Current trends and developments

One reason for the falling numbers compared to the previous quarter could be the temporary recovery in the stock market, which led to a temporary stabilization in the corporate landscape. Nevertheless, the dynamics of insolvencies over the course of the year remain characterized by the high numbers from the same period last year. There were a total of 3,522 bankruptcies in the first six months of 2025, an increase of around seven percent.

The services sector remains the most affected area, with 524 bankruptcies reported in the second quarter of 2025 alone. There was a slight decline of two percent in business start-ups to 15,334 entries in the same period, with a notable number of start-ups in the financial services and personal services sectors.

Foresights and forecasts

The insolvency trends indicate that the situation remains critical. According to current surveys, the number of insolvency reports is closely linked to the number of active companies in the respective sectors and is an early indicator of future economic development. The highest registrations of business start-ups were recorded in the months of July, August and September 2025, with 15,813 new launches. In comparison, the number in the previous year was 15,761. insolvencyannouncements.de Although it provides information about insolvencies in Germany, it shows the relevance of transparency and official dealings with such official procedures, which also require attention in Austria.

The ongoing uncertainty of the economic environment and the increasing number of insolvencies underline the need for companies to optimally prepare for possible challenges and to develop appropriate strategies in order to avoid possible insolvency.