Eurostat’s latest data reveal a slight decline in EU business bankruptcies, dropping by 0.7% in the fourth quarter of 2024 compared to the previous quarter. Meanwhile, business registrations increased by 2.6%, reflecting a positive trend across all economic sectors.
Business Registrations Show Growth in All Sectors
According to seasonally adjusted data, business registrations rose in every sector during Q4 2024. The transportation and storage sector saw the highest increase at 5.7%, followed by industry (+3.5%) and the information and communication sector (+2.3%). The construction sector recorded the smallest growth, with a 0.9% rise in new business formations.
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This growth suggests that businesses are continuing to expand despite economic uncertainties, with particular strength in industries reliant on logistics and digital services.
Bankruptcies Decline Overall but Surge in Education and Social Activities
While the total number of bankruptcies fell in Q4 2024, some sectors faced difficulties. The education and social activities sector experienced a sharp increase in bankruptcy declarations, rising by 17.7%. The industry sector also saw a slight rise of 1.6%.
However, the most significant decreases in bankruptcies were recorded in the information and communication sector (-25.6%), accommodation and food services (-12.2%), and transportation and storage (-10.1%). The overall reduction in bankruptcies suggests improved economic stability, although some sectors continue to face challenges.
Economic Implications and Outlook
The decline in bankruptcies and the increase in new business registrations indicate a generally resilient EU economy. While sectors like education and social activities struggle, the overall economic environment appears favorable for business expansion.
Economists will closely monitor future trends to assess whether this positive momentum continues into 2025.
This article is originally published on ec.europa.eu
