KUKE: The number of bankruptcies falls, but the future is uncertain

Number of enterprises which declared bankruptcy decreased by 14.5 percent y/y to 53 in March this year, said the Export Credit Insurance Corporation (KUKE). Despite the revision of the upward pace of this year’s GDP growth in Poland, KUKE upholds the forecast that this year there will be an increase in the number of insolvencies to about 680 entities.

“Although the vast majority of analytical centers increased the projections of this year’s GDP growth ... in the previous year, despite the excellent economic situation, the results of non-financial companies were significantly weaker than in the previous year, and the biggest threats from external markets can still materialize,” vice president of KUKE Tomasz Ślagórski said.

As the latest data from the Central Statistical Office (GUS) show, the net profit of non-financial enterprises in 2018 was by more than 10 percent lower y/y, and the net turnover profitability rate decreased to 3.7 percent from 4.4 percent in 2017.
(ISBnews)