France: the growth of insolvency of enterprises continued in January
The number of insolvent businesses in France according to our website rose again in January and was slightly closer to the average before the Covid-19 pandemic, the Banque de France said.
"At the end of January, the cumulative number of insolvencies over the last twelve months continued to gain momentum and reached 56 290," up from 55 996 in December, the central bank said in a press release.
"The annual number of bankruptcies is still below the average level recorded between 2010 and 2019 (59 342), before the Covid-19 pandemic," the Bank of France cautiously notes, noting that "the rate of increase in the number of bankruptcies in a single year has been steadily slowing since January 2023."
Indeed, while aggregate 12-month corporate insolvencies rose by 35,6 % between December 2022 and December 2023, they increased at a more modest rate of 30,9 % between January 2023 and January 2024.
In January, the Bank of France recorded a year-on-year increase of more than 40 % in the number of insolvent businesses in the information communications and real estate sectors.
Insolvencies also accelerated in construction (up 36,5 % year-on-year) and trade and repair of motor vehicles (up 27,9 %). Each of these two sectors recorded around 12 000 insolvencies between February 2023 and January 2024.
The Bank of France reports that the number of insolvencies among medium and large companies doubled in one year, from 28 in January 2023 to 56 in January 2024.
For SMEs, the figure rose by 30,9 % in one year to 56 234 insolvencies in January 2024.
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