The increase in business insolvencies continues, reaching 65,764 in December for the whole of 2024. This increase is partly explained by the slowdown in the economy and the catching up of insolvencies that did not occur during the Covid period. -19, the Bank of France announced.
Business insolvencies reached 65,764 over 12 months in December, an increase of 16.8% compared to December 2023, due partially to catching up on insolvencies that did not occur during Covid, according to the Banque de France, and to an economy slowed down.
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Defaults over twelve months were slightly lower in November, at 65,298, the Banque de France also indicated on Friday, but their progression over one year was higher: +18.8%. The figures for December 2024 are still provisional.
The real estate sector particularly affected
The progression “is partly linked to a catch-up effect, after the sharp slowdown in insolvencies during the Covid period (2020-2021)”, estimates the Banque de France in its press release. It observes that insolvencies – after taking into account recovery and liquidation procedures – are slowing down “in all sectors and for most company sizes”.
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Among these, the number of mid-sized companies (ETI) and large companies “is stabilizing but remains higher than its pre-pandemic average”. The strongest increase is found in real estate activities (+31.2% over one year and +29.5% compared to the annual average of the decade preceding Covid).
The increase climbs to 34% in 2024 in medium-sized companies
“Transport and warehousing” (+30.7% over one year, and +57.2% compared to the pre-Covid decade) are also increasing very sharply, as are failures in finance and insurance ( +26.9% over one year +46.8% over the pre-Covid period). On the other hand, if failures in construction are 24.8% more numerous in 2024 than in 2023, their number only exceeds the level of the 2010-2019 decade by 0.4%.
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By size, the largest increase in insolvencies over one year is found in medium-sized companies: 505 experienced a failure in 2024, up 34% compared to 2023. Even if it did not increase considerably in 2024 ( 65 after 60 in 2023, or +8.3%), the number of mid-caps and large failing companies has almost doubled (+97%) compared to the decade average pre-Covid (33 per year).
