Austria is facing a wave of bankruptcies, with as many as 7,000 Austrian companies facing bankruptcy by the end of the year, which would be a record.
More and more companies are going bankrupt in Austria, with the number of corporate bankruptcies expected to rise to 7,000 this year, said Ricardo-José Vybiral, head of the Austrian credit and debt collection agency KSV1870.
According to the group’s latest estimates, as reported by Hirado, 5,110 companies went bankrupt in the first three quarters of this year alone, employing a total of 15,200 employees.
According to Vybiral, trade and industry are still performing poorly, with the wave of bankruptcies affecting the same sectors as before: “retail, construction, and accommodation and catering.”
A total of 921 retailers have gone bankrupt since the beginning of the year, the agency reports, a 10 percent increase versus last year. The construction industry is in second place, and the accommodation and catering industry came in third.
According to the Kronen Zeitung, 6,587 insolvencies were registered last year, and 5,380 in 2023, and now, as Austria is in its third consecutive year of recession, 2025 may see a record 7,000 corporate bankruptcies. “We have reached a bottom in business” – the Austrian economy is weak for the third year, the recession continues
Despite some signs of economic stabilization, it has not been enough to curb the wave of bankruptcies, Hirado notes. High energy costs, high wages, U.S. tariffs, and a weak economy in Germany, Austria’s primary trading partner, are all preventing any real recovery.
In terms of consumers helping the economy, this is unlikely, as Austrians are looking to save given the surrounding uncertainties.
“We have reached a low point in business,” said Ricardo-José Vybiral, adding that the negative mood permeates the entire country, to the point that even Austria’s westernmost province, Vorarlberg, “which has always been exemplary in terms of business confidence, is now below average.”
Many bankruptcy proceedings cannot even be initiated due to a lack of funds to cover costs, the agency head continues. Some 1,800 companies in the first three quarters were forced to close their business and all their employees lost their jobs.
