In the past year, corporate insolvency in Poland has increased by as much as 70 percent, but the situation is expected to normalize in the coming months.
The number of insolvent companies in Poland in 2023 increased by as much as 70% – according to the Global Insolvency Report. Fortunately, the situation is now expected to calm down, among other things due to the improvement in the overall economic situation in the country.
The Global Insolvency Report showed that Poland is among 26 countries that recorded a double-digit increase in corporate insolvencies last year. In this group, 11 countries experienced an increase in insolvencies of over 30%. A higher increase than in Poland, among all the countries surveyed, was recorded only in Hungary, where insolvent entities increased by 146% over the year. In total, in 2023, we had 4,467 bankrupts in Poland.
Compared to the situation before the pandemic, we have undoubtedly the highest increase in the number of insolvencies on a global scale, as much as +357% in the period from 2019 to 2023. To a large extent, due to a different approach than in most markets – changes in the restructuring proceedings during this difficult time have facilitated and accelerated restructuring procedures (and they were not de facto suspended, as in many other markets)
– emphasized in the analysis.
The authors of the report expect that the number of insolvencies will now normalize, and the reasons will be a high reference base and a greater impact of improving economic fundamentals in Poland. Due to the still low economic growth and structural weakness manifested, among others, in low profitability, analysts expect that in 2024 the number of insolvencies will fall by only 10% compared to 2023, and in a year the decrease will amount to 14%.