Lower Austria's companies breathe: Less bankruptcies in the 1st half of the year!
Lower Austria's companies breathe: Less bankruptcies in the 1st half of the year!
In the first half of 2025, the situation of company insolvencies in Lower Austria has been significantly relaxed. According to the Lower Austrian Economic Report, only 260 companies had to file for bankruptcy by June, which corresponds to a decline of 2.4 percent compared to the previous year. These positive news came after an increase in bankruptcy figures in 2023 and 2024, when the companies had to struggle with the aftermath of the Corona crisis. [OE24] reports that the liabilities have even dropped by 45.4 percent during this period, from 515 million euros to only 282 million euros.
Although the situation in Lower Austria has stabilized, it does not look quite as rosy in other federal states. In the national average, bankruptcy rose by 6.1 percent, which shows that the challenges for many entrepreneurs are still great. As can be seen from different reports, the construction, trade and gastronomy industries are particularly affected. [noe.orf.at] emphasizes that up to 6,000 bankruptcies were registered in 2023, which corresponds to a worrying increase of 30 percent compared to the previous year
economic framework conditions
On the positive side, it can be determined that inflation has subsided and the stabilization of energy and material prices brings a little light into the dark. Forecasts indicate that 2025 interest rate cuts could be due, which lowers the financing costs and possibly stimulates consumption and investments. Nevertheless, the economic situation remains uncertain and could be affected by increasing energy prices and a possible renewed inflation. The reality that many companies have lived through crises since 2020 suggests that not everyone has enough reserves to master future challenges.
industries in focus
- construction: The industry has already lived through difficult times, and many companies are still fighting with low order volume and rising costs.
- trade: Here an increasing consumption could help relieve some sales problems, but the competition from online trade remains strong.
- industrial production: This could benefit from increased consumer trust, but it depends heavily on the demand for export.
The coming months will be crucial for how companies react to the existing challenges. The course of the bankruptcy figures will determine whether they succeed in asserting themselves through contract negotiations, cost reductions and increases in efficiency. While the situation in Lower Austria stabilizes, an overall mixed picture is emerging for the rest of the country. The next steps of the economy and the entrepreneurs: the inside of the public remains exciting and should remain the public.
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| Ort | Niederösterreich, Österreich |
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