Surge in Corporate Bankruptcies Sweeps Across Finland, Hitting Key Industries

In Finland, there has been a notable increase in the number of bankruptcy filings, particularly within the construction, tourism, and restaurant industries. This surge in bankruptcies represents the highest rate of corporate collapses since the Euro crisis of 2013-2014. According to data recently released by Statistics Finland, in August alone, there were 283 bankruptcy filings, which is 56 more than in the same month the previous year.

Over the past twelve months, there has been a 22% increase in bankruptcy filings. The construction industry has witnessed the most significant growth in bankruptcies, with an increase of over 43% compared to the same period in 2022. The accommodation and catering sector has also been significantly affected, with more than a 32% increase in bankruptcy filings. Additionally, industries such as mining, energy, water supply, and manufacturing have experienced a 27% increase in bankruptcy filings.

Juhana Brotherus, the Chief Economist of Entrepreneurs (SY) in Finland, has predicted that the high level of bankruptcies will continue throughout the rest of the year. He expects that economic cycle shifts and changes in interest rates next year may help ease the situation. Brotherus has even suggested that this year’s bankruptcy numbers could reach levels similar to those seen during the financial crisis, exceeding 3,200 bankruptcies, the highest figure in the new millennium.