Last month, in Portugal, the number of insolvencies increased and the number of new companies being incorporated decreased. When compared to the same period last year, there were more companies closing than companies being created.
According to the article published by ECO Sapo, the number of new companies was not enough to make up for the number of insolvencies. The only sector that managed to have a positive ratio was ‘construction’.
374 companies filed for insolvency (58 more than last year, which accounts for an 18% increase). This number confirms the tendency that was observed during 2023. The data reveals that the focus of the insolvencies is on the industrial sector, especially the ‘textile’ and ‘fashion’ sectors.
However, although the number of insolvencies in February was higher than last year’s, the total number of insolvencies in January and February, together, is smaller than last year’s period, which is a good sign. There were 20% less insolvencies in 2024 than in 2023.
When it comes to the incorporation of new companies, there were 5.1% fewer new companies in 2024, than in the same time last year (January and February). As referred to above, the only sector that witnessed an increase in the number of new companies was ‘construction’. Contrarily, the sectors that took the biggest hit were ‘transportation’ and ‘corporate services’.
