Red alert: corporate bankruptcies in Austria are exploding!

Red alert: corporate bankruptcies in Austria are exploding!

In the first half of 2025, corporate insolvencies in Austria recorded an alarming increase of 33.5 percent compared to the previous year. This development primarily affects small and medium-sized companies, especially in the trade, tourism and construction sectors. In Salzburg, where 215 company bankruptcies were registered in the first half of the year, this corresponds to an increase of a third. 39 trading companies, 33 tourism companies and 31 construction companies are particularly affected. What is also alarming is that 103 companies could not afford the legal costs of bankruptcy, which highlights the challenges for entrepreneurs in this region ots.at.

The KSV1870 has forecast a total of 6,500 to 7,000 bankruptcies for 2025, which corresponds to a similar level to the previous year. In the first quarter of 2025, 1,741 corporate bankruptcies were recorded, an increase of 3.1 percent compared to the previous year, which means an average of 19 bankruptcies per day. Despite a decline in the construction and catering sectors, overall insolvency figures remain high diepresse.com.

Causes and demands

The main drivers of insolvencies continue to be the retail, construction and catering sectors, which account for around 45 percent of all insolvencies. While insolvencies in the real estate and housing sector increased by almost 62 percent, liabilities rose to 2.04 billion euros in the same period, which corresponds to an increase of 6.9 percent compared to the previous year.

Norbert Ranftler, Vice President of the Salzburg Chamber of Commerce, criticized the federal government's inaction and called for an immediate program to relieve the burden on companies. These include measures such as tax cuts, an energy price cap, investment incentives and reductions in bureaucracy ots.at.

Forecasts for the future

Economic conditions suggest that bankruptcies could remain high in the coming months. EY predicts that the number of insolvency proceedings will remain at a high level this year. While positive factors such as easing inflation and stable energy prices are hoped for, there are also negative signs, including possible rising energy prices and uncertainties due to geopolitical conflicts ey.com.

Overall, it remains to be seen how companies will respond to these challenges. There are currently numerous risks that could further impact insolvency figures, including trade barriers and developments in global demand. Market participants must adapt to contract negotiations and cost reductions in order to survive in the current difficult economic environment.