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Dutch Economy Faces Rising Bankruptcies and Export Decline

ANP

NOS Nieuws•vandaag, 07:45

The number of companies being declared bankrupt is increasing. In the whole of 2023, 3,271 companies went bankrupt, more than half more than a year earlier, according to figures from the Central Bureau of Statistics (CBS).

Last year, various organizations increasingly saw entrepreneurs turning to them for help to avoid bankruptcy. However, fewer companies still collapsed than in 2019. In the last year before the corona pandemic, 3,792 companies went bankrupt.

Last year there was a peak in the number of bankruptcies, especially in December. 91 companies collapsed, 30 percent more than in November. The trade sector had the most bankruptcies: 682, followed by construction with 479 bankruptcies.

There has also been a significant increase in the catering industry, with 267 bankruptcies, compared to 134 in 2022.

The Dutch economy ended up in a mild recession last year. This was partly because interest rates were increased to counter price increases. The Dutch Central Bank sees that inflation is increasingly coming under control, but does not expect it to structurally reach the ‘normal’ level of 2 percent until 2025.

Exportdaling

The declining exports are particularly worrying for the economy. In November, the export of goods shrank again by 4.5 percent, CBS reported today. Exports of food, beverages and chemical products in particular fell compared to the same period last year. This is partly due to the contraction of the economy in Europe, especially in Germany.

Exports account for about a third of economic growth in the Netherlands. Exports of goods make up approximately three quarters of total exports.

2024-01-12 06:45:20
#companies #bankrupt #corona

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