According to data collected by Dun & Bradstreet, bankruptcy rates have been on the rise in Finland. However, there are signs of stabilization in some regions, such as Pohjanmaa, Lappi, and Etelä-Savo, where the number of bankruptcies decreased compared to the previous year. The cumulative number of bankruptcies in Finland began to deviate from previous years in June 2022, with a 26% increase from the previous year.
Dun & Bradstreet's sales director, Pasi Leino, stated that the increase in bankruptcy rates began in June 2022, which was not surprising given the economic turbulence that has occurred recently. After the pandemic, inflation, rising energy and raw material prices, and supply chain problems have all hit the economy. Despite these challenges, there are positive signs that bankruptcy rates are stabilizing.
In terms of different regions, Pohjanmaa, Lappi, and Etelä-Savo have shown positive developments with a decrease in bankruptcy rates compared to the previous year, with -22%, -18%, and -11%, respectively. However, there has been an increase in bankruptcy rates in some regions, such as Ahvenanmaa, Kymenlaakso, Pohjois-Savo, Päijät-Häme, and Kanta-Häme. The increase in bankruptcy rates for Ahvenanmaa was not statistically significant due to the low number of bankruptcies.
Dun & Bradstreet's data also shows that bankruptcy rates have increased the most in the IT/communications industry (34%), retail (34%), construction (28%), and accommodation and food services (24%). Leino stated that the increase in bankruptcies in the IT and communications industry may be due to the tightening of financing at the same time as the increase in costs.
The accommodation and food services industry has suffered more in densely populated areas than in sparsely populated areas. However, the number of bankruptcies in this industry appears to be decreasing.
Leino emphasizes that not only small companies but also large companies are facing bankruptcy, making it essential to closely monitor suppliers and customers for better prediction of the future. He also notes that the number of new businesses starting up is continuing at the same pace as in previous years. The majority of new businesses were launched in densely populated areas such as Uusimaa, Varsinais-Suomi, and Pirkanmaa.
Leino stated that in difficult times when people lose their jobs, the number of new businesses tends to increase, as is evident in the construction industry. Therefore, it is essential to track and analyze the current economic situation and trends to make informed business decisions.