Barthelemy Philippe with AFP
modified to
1:50 p.m., January 05, 2023
After a drop observed during the health crisis, the number of business failures in France rebounded strongly in 2022, exceeding 40,000 over one year. Despite this increase, this number remains 20% below the pre-Covid level, the Banque de France said on Thursday.
The number of business failures in France rebounded strongly in 2022 following the fall observed during the health crisisexceeding 41,000 over one year, but it remains 20% below the pre-Covid, the Banque de France said on Thursday. Between January and December 2022, 41,020 defaults were recorded, compared to 27,592 between January and December 2021, according to figures published by the central bank.
“In 2022, the number of business failures is normalizing without however reaching the pre-Covid crisis levels”, she specified in a press release: it is 20% lower than that recorded in 2019 (51,145 failures on the ‘year). “This normalization movement is common to all sectors of the economy and slightly more pronounced for SMEs excluding indeterminate sizes,” she added.
Accommodation and catering particularly affected
But “the Banque de France does not expect a wave of bankruptcies in the coming months”, underlined Emilie Quema, director of companies within the institution.
In detail, in December 2022 over one year, failures more than doubled (105.7%) in accommodation and catering. This sector had benefited a lot from aid during the health crisis, when many establishments were forced to temporarily close their doors by the government. Industry (+64.3%), trade and car repair (+54.4%) also recorded clear increases.