Insolvency attack: Austria's economy in severe crisis!

Insolvency attack: Austria's economy in severe crisis!

Österreich, Land - The creditor protection association KSV1870 has published dramatic news on the current bankruptcy situation in Austria. According to KSV insolvency expert Karl-Heinz Götze, the "crisis of the bankruptcies" will continue to stop. For 2025, between 6,500 and 7,000 bankruptcies are forecast - a level that corresponds to the high numbers of the previous year. 1,741 bankruptcies have already been registered in the first quarter, which corresponds to an increase of 3.1 percent compared to the previous year. This means that an average of 19 bankruptcies are recorded every day, whereby the trade, construction industry and the catering trade, which together make up almost 45 percent of all bankruptcies, are particularly affected. The gastronomy experienced with a decline of 11.2 percent and the construction industry with 12 percent significantly negative developments.

increasing pressure due to economic weaknesses

A look at the property and housing even shows a dramatic increase in bankruptcies by almost 62 percent in the first quarter. This underpins the dark mood in the economy, since "positive signals from some industries" are far from sufficient to improve the general climate. Götze emphasizes: "Austria's economy continues to go on the stick." The total liabilities in the first quarter is 2.04 billion euros, an increase of 6.9 percent for the previous year's quarter, among other things due to the breaking of the Signa company conglomerate.

In contrast, private bankruptcies have a decline of 8.7 percent with a total of 2,131 cases. In Styria in particular, the decline in minus 25.4 percent is the highest, while Salzburg has a small increase of 2.9 percent. Overall, the relief for private competitions is a bright spot in an otherwise very tense scenario, which is characterized by the ongoing economic challenges. According to KSV1870, the average debt in private bankruptcies is over 96,000 euros.

These alarming developments show that there is an urgent need for action to get the Austrian economy back on track. For more precise insights into the current bankruptcy figures and its effects on the economy, the complete reports from oe24.at and ksv.at