The number of insolvencies in Poland is rising, according to statistics cited by news outlet Rzeczpospolita
© Getty Images/MikeMareen
The number of bankruptcy declarations in Poland is growing at a record pace as the threat of recession hits the country’s businesses, the Rzeczpospolita news outlet reported on Monday, citing data from business intelligence agency Dun and Bradstreet.
In total, 110,500 companies suspended operations in the first half of the year, the outlet said. The number of businesses due to declare insolvency is expected to exceed 220,000 by December, which would represent a 30% increase on 2022.
Construction is the worst-affected industry, with 27,000 companies having entered bankruptcy in 2023. According to the report, the sector has been hit by high employment costs and surging prices of raw materials, fuel, and energy, as well as soaring debt servicing costs.
The trade industry, including both the retail and wholesale sectors, has been affected by a decline in consumer demand and saw over 18,200 companies file for bankruptcy.
READ MORE: Domino’s Pizza files for bankruptcy in Russia
“We are seriously experiencing the increase in operating costs, and at the same time we are fighting for at least minimizing the scale of price increases that both retail chains and consumers are now struggling with,” the president of the Polish Trade and Distribution Organization, Renata Juszkiewicz, said.
Economists have attributed the rise in bankruptcy filings to an economic slowdown and the threat of recession.
For more stories on economy & finance visit RT’s business section
