Insolvencies on the Rise in Austria – But Still Better than 2019

According to data from Statistics Austria, 754 insolvencies were reported in the third quarter of 2021, 24.2 percent more than in the third quarter of 2020. However, the numbers are still lower than in the pre-pandemic year of 2019.

“The number of insolvencies in the third quarter of 2021 increased by a quarter compared with the same quarter last year, but is still 37.6 percent lower than the third quarter of 2019”, said Statistic Austria general director Tobias Thomas.

State corona aid to businesses, the short-time work program (Kurzarbeit) and deferred payments helped stave off the feared wave of insolvencies and bankruptcies, said the general director in a statement on Tuesday. Most of the insolvencies in Austria in the third quarter of 2021 were in the building sector and the service provision sector.

162 finance service providers and other service providers, 142 building companies, and 125 retail companies declared their insolvency.

Another 107 companies in the hotel and gastronomy sectors, which were also hit especially hard by the pandemic, were insolvent. This was an increase of 55.1 percent compared with the third quarter of 2020, but a minus of 43.1 percent compared with the third quarter of 2019.

Reported in cooperation with the Austrian Press Agency / APA.