Fewer insolvencies

The bankruptcy vulture has flown less frequently in Tyrol recently

(Bild: © Markus Mainka (www.aviation-stock.de))

Nationwide, the number of business insolvencies rose by 27.3 percent in the first quarter of 2024. In this country, however, it fell by almost a quarter. Private bankruptcies, on the other hand, increased slightly.

Tyrol's economy is attracting attention with some positive news. In the first quarter of the year, the number of insolvencies rose across Austria in all federal states (by an average of 27.3%), only in Tyrol did it fall. In this country, 71 companies went bankrupt from January to March (this was extrapolated) - 22 or 23.7% fewer than in the same period last year.

No major company insolvencies so far
The resulting liabilities are even clearer: While the figure was 62 million euros in 2023, this year it is 13 million (down 79%). However, it is currently not possible to make a reliable forecast regarding the development of liabilities in Tyrol. This is mainly because, in contrast to the first quarter of 2023 (Pharmazeutische Fabrik Montavit GmbH with liabilities of 45 million euros), there have been no major insolvencies to date.

If you analyze the insolvency cases over a longer period of time, it becomes clear that more people in cities than in rural areas tend to go bankrupt.

Klaus Schaller, Leiter des KSV1870 in Innsbruck

"The current situation in Tyrol is due to several factors. Tyrolean businesses benefit from the existing, good mix of sectors. Industry, commerce, tourism and the service sector support each other - even in a very difficult market environment in many areas," emphasizes Klaus Schaller, Head of the Credit Protection Association 1870 in Innsbruck (KSV 1870). Nationwide, there have been 1691 insolvencies to date with a volume of liabilities of 992 million euros.

Inflation will cause private bankruptcies to rise
The picture is different for private bankruptcies. In the first three months of comparison, there was an increase from 169 to 180 (plus 6.5%). Liabilities remained the same at € 16 million. Nationwide, there have been a total of 2265 bankruptcies so far this year. KSV1870 expects that the continuing rise in the cost of living will lead to additional personal insolvency cases at the district courts in the coming months.