Bankruptcies fall and new business registrations rise: results for Q4 2024 in the EU

According to Eurostat, the number of bankruptcy declarations among companies in the EU decreased by 0.7 per cent in the fourth quarter of 2024 compared to the third quarter of 2024. At the same time, new business registrations increased by 2.6 per cent. These data reflect a positive trend in business activity despite the ongoing economic challenges.

Growth in the number of new company registrations was recorded in all sectors of the EU economy. The highest growth was in transport and storage (+5.7%), industry (+3.5%), and information and communication technologies (+2.3%). The lowest growth was recorded in the construction sector (+0.9%).

Despite the overall decline in bankruptcies, growth was recorded in two sectors:

• Education and social activities - an increase of +17.7%.
• Industry - +1.6%.

At the same time, the largest decrease in bankruptcies was observed in the following industries:

• Information and communication technologies (-25.6%).
• Hotel and restaurant business (-12.2%).
• Transport and storage (-10.1%).

Eurostat data for the fourth quarter of 2024 shows a steady increase in business activity in the EU, despite economic instability. The increase in registrations in the transport and IT sectors is particularly notable, reflecting the development of the digital economy and global supply chains. However, the increase in bankruptcies in the education and social sectors points to difficulties in these sectors that require support and adaptation to new conditions.