Number of bankruptcies lowest since 2011

As many as 178 companies were declared bankrupt in the first quarter of 2014, which is 15 percent less than in the corresponding period of last year, according to preliminary data compiled by credit insurance firm Coface. This is the lowest number since 2011, but still 80 percent higher than in Q1 2008.

 

The firm expects the downward trend to continue throughout the entire 2014.

 

“The higher GDP growth and increasing private consumption have had a visible impact on the number of declared bankruptcies after at least a quarter,” Grzegorz Sielewicz, Coface chief economist said.

 

He added that the Polish economy is expected to grow by 2.9 percent this year, which should translate into 6-8 percent decrease in bankruptcies, barring unexpected shocks, either domestic or caused by the instability in Ukraine.

 

The share of manufacturing and construction firms fall y/y (from 33 percent to 29 percent for manufacturers and from 21.4 to 18 percent for construction companies), while the share of retailers in the total number of bankruptcies increased (from 23 percent to 29 percent).