Poland compared to EU in terms of bankruptcy of companies

In the third quarter of 2020, when the restrictions were slightly eased in many countries, the number of new company registrations in the European Union increased significantly compared to the previous quarter (by 45 percent). This broke the downward trend in opening new businesses visible both in the first and in the second quarter of last year.

The number of insolvencies in the EU also increased significantly in the third quarter compared to the second quarter (by almost 26 percent), also after a significant decline in the first and second quarters.

In turn, comparing the year-on-year data, in the third quarter of 2020, 2.2 percent more new companies were registered. In contrast, bankruptcy took place 17 percent less than the same quarter a year earlier.

How does Poland fare compared to other EU countries? In terms of registering new companies, we do not differ much from the EU average. In the second quarter, 32 percent fewer companies were registered in Poland than a year ago, while the EU average is 29 percent. However, in the third quarter, there was 1 percent of new registrations less year on year, while the EU average is the above-mentioned plus 2.2 percent.

On the other hand, Poland stands out in the EU statistics in terms of the number of bankruptcies. In the second quarter, almost 20 percent more companies fell than in the corresponding quarter a year earlier, while in the entire EU, on average, more than 30 percent of companies went bankrupt. In turn, in the third quarter, when the restrictions were slightly loosened, the number of bankruptcies in Poland was less than 8 percent lower than a year earlier, while the EU average was lower by almost 18 percent.

(money.pl)