Business insolvencies saw a sharp increase in 2023

The accommodation and catering, information and communication sectors and real estate activities are particularly affected.

A sharp increase. The number of business failures increased significantly 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%.

In total, the number of failures over one year nevertheless still remains “significantly lower” at the average level of 59,342 recorded over the period 2010-2019, notes the Banque de France.

Economic sectors unequally affected

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, VSE-SME insolvencies jumped 34.3% over one year. Insolvencies of mid-sized and large companies increase by 111.1%.