The number of insolvencies in Romania increased by 9.38% in 2024 compared to 2023, and there was also a 75% increase in insolvencies among companies with a turnover of more than 5 million RON, informs Coface Romania in a press release.
The latest study conducted by Coface Romania shows that in 2024, 7,274 new insolvency proceedings were initiated compared to 6,650 in 2023. Denied payment instruments have increased both in value (+30%) and in number (+17%) compared to 2023, but continue to remain below the levels recorded in 2019. The Wholesale and Retail Trade/Repairs of motor vehicles and motorcycles sector reported the highest number of insolvencies, namely 1,927.
Internationally, the economy was affected last year by two military conflicts: the war in Ukraine and the Hamas attack on Israel, with geopolitical factors contributing to the economic slowdown in the European Union, particularly in Germany. This has led to an increase in the number of insolvencies in Western Europe with cascading effects on other economies.
The evolution of Romania's economy followed the same trend in 2024, when economic growth is estimated at around 1%, after 2.1% in 2023 and 4.1% in 2022. The high inflation rate of 5.1% in December 2024 will put additional pressure on business activity through the high cost of financing and lower consumption. The main macroeconomic vulnerability in 2025 is the fiscal deficit, which stood at 8.6% of GDP in 2024, compared with 5.68% in 2023, Coface Romania shows.
According to the cited source, the top three sectors by number of companies that went into insolvency last year are: wholesale and retail trade/repairs of motor vehicles and motorcycles (1,927), construction (1,510) and manufacturing (860) and they account for about 59% of the total number of insolvencies registered in 2024.
Of the total number of companies in insolvency in 2024, about 37% are companies with at least 10 years of activity (established before 2014). At the same time, companies in insolvency in 2024 had total debts of about 2.5 billion EUR at the end of 2023.
The study took into consideration the newly initiated insolvencies, based on the data published by the National Trade Register Office (ONRC). The analysis of the financial indicators for the firms considered was based exclusively on the financial statements submitted with the Finance Ministry during the analyzed period, based on data processed by Coface.
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