It is an important indicator for measuring the economic health of our businesses. The number of insolvencies increased sharply in 2023, however remaining below its average level before the Covid-19 pandemic, according to figures published Friday January 5 by the Banque de France.
Between January and December 2023, 55,492 failures were recorded, compared to 41,297 over the previous twelve months, an increase of 34.4%. “This level reflects a catching-up movement which concerns all sectors of the economy but in a heterogeneous manner,” commented the Bank of France in a press release.
Failures up 44.6% in accommodation and catering
Compared to 2022, insolvencies increased by 44.6% in accommodation and catering, by 44.4% in information and communication, by 40.4% in real estate activities and by 38.7% in construction. On the other hand, they fell by 1.3% in agriculture, forestry and fishing.
By company size, insolvencies of VSE-SMEs jumped by 34.3% over one year, to 55,435. Insolvencies of mid-sized and large companies increased by 111.1% but on a much larger number more limited, 57 over twelve months.
In total, the number of failures over one year nevertheless still remains “significantly lower” than the average level of 59,342 recorded over the period 2010-2019, notes the Banque de France. She explains that “defaults have, in fact, declined sharply from the start of the health crisis, following the temporary modification of the dates of characterization and declaration of the status of cessation of payments, then public measures of cash support to avoid this state of cessation of payments”.
The rate of increase in insolvencies over one year also slowed again: it was 35.6% in November over one year.