Bankruptcies continue to rise and in some industries the situation is the worst in over a decade, according to credit information agency UC. Now more Swedes risk losing their jobs.
The forecasts show a turnaround in the summer, something that is not yet visible among the companies.
Many businesses are struggling to adjust to the rising costs of the recession. Runaway inflation, high interest rates and a weak Swedish krona have put a damper on the business world. This has led to a wave of bankruptcies which is now the worst in over ten years
– The industries that have been hit the hardest are cyclically sensitive, such as the construction sector, hotels and restaurants as well as the information and communication industry, says Petter Alvsten, credit market manager at UC, to TV4 Nyheterna.
Big increase
During the year, the number of bankruptcies has so far increased by 64 percent. It’s tougher for the construction industry, but also in hotels and restaurants, bankruptcies are taking off.
In February, bankruptcies in the construction sector increased by 86 percent compared to the same month last year. Within hotel and restaurant operations, this is 62 percent.
Turning to summer
Due to the development, more Swedes are expected to become unemployed in the future, even if the market foresees a turnaround in the economy by the summer – a turning point that has not yet appeared among the companies.
– Inflation has come down and interest rates are expected to be lowered in the next quarter. We also see increased optimism among households, even if it is from low levels, continues Petter Alvsten, head of credit markets at UC.