Bankruptcies across Belgium have soared to their highest levels since 2017 and reached a record high last year in Flanders, according to a new report by market analysis firm GraydonCreditsafe.
The study, which was also reported by the Belga News Agency, noted that a total of 10,771 bankruptcies were registered across Belgium in 2023, up 9.65% compared to 2022.
Flanders was by far the hardest hit region, accounting for 6,234 – or nearly 60% – of all insolvencies. This is 10.66% more than in 2022 and 2.66% more than the previous annual record set in 2013.
Construction and hospitality were the sectors that suffered the most at the national level, accounting for approximately one-fifth and one-sixth of all bankruptcies respectively. They were also the hardest hit sectors in Flanders, where they accounted for nearly a quarter and a sixth of all insolvencies respectively.
Bankrupt analysis?
The study's findings were far from unexpected, with numerous past studies having predicted a sharp increase in insolvencies in 2023. Indeed, one study published by GraydonCreditsafe in January last year explicitly forecast an imminent "wave of closures" across Belgium.
"The economic shock of Covid-19 has not yet been fully digested, while the shocks of energy prices and wage indexation are looming," explained Eric Van den Broele, GraydonCreditsafe's Director of Research.
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Imminent bankruptcy is not the only major concern facing Belgian businesses, with many now also fearing declining competitiveness caused by historically high energy prices. Last year, the Federation of Belgian Companies (FEB) found that 80% of Belgian businesses are paying two-and-a-half times more for energy than they were at the beginning of 2022.
High energy prices across Europe also mean that the continent as a whole has suffered a steep increase in bankruptcies in recent months: according to a recent study by Eurostat, the EU's official statistics office, bankruptcies across the bloc are now at their highest levels since 2015.
