Brussels, October 24, 2024 โ Belgium saw a significant drop in the number of bankruptcies in the third quarter of 2024, according to a recent analysis by Altares Dun & Bradstreet. With 2,368 bankruptcies, the number decreased by 25.26% compared to the previous quarter, which recorded 3,153. This decline follows an annual pattern during the summer months, a period traditionally marked by reduced economic activity.
Nevertheless, the number of bankruptcies continues to rise on an annual basis. In the first three quarters of 2024, a total of 8,758 companies went bankrupt, marking an increase of 4.22% compared to the same period in 2023, when there were 8,403 bankruptcies.
Hardest-hit sectors and regions
Most bankruptcies occurred in the construction industry (591), trade (494), and the hospitality sector (377). โHistorically, these sectors are sensitive to economic fluctuations and external factors such as consumer behavior and delayed building permitsโ, says Barry de Goeij, senior data scientist at Altares Dun & Bradstreet.
Regionally, most bankruptcies occurred in Antwerp, with 373 bankruptcies (15.75%), followed by the Brussels-Capital Region with 285 bankruptcies (12.04%) and East Flanders with 211 bankruptcies (8.91%).
| Region | Number of Bankruptcies | Percentage |
| Antwerp | 373 | 15,75% |
| Brussels-Capital Region | 285 | 12,04% |
| East Flanders | 211 | 8,91% |
| Flemish Brabant | 206 | 8,70% |
| Liรจge | 185 | 7,81% |
| Hainaut | 185 | 7,81% |
| Limburg | 150 | 6,33% |
| West Flanders | 141 | 5,95% |
| Walloon Brabant | 113 | 4,77% |
| Namur | 99 | 4,81% |
| Luxembourg | 16 | 0,08% |
Trade intensity recovers in most sectors
Despite the challenging climate, trade intensityโan indicator of business transactions between companiesโincreased from 82.8 points in the second quarter of 2024 to 85.3 points in the third quarter. After two quarters of decline, this recovery signals a resurgence in economic activity. Nearly all Belgian sectors show an increase in trade activity. Exceptions are the government sector, where activity declined by 5.3%, and the industrial sector, which saw a 2.8% decrease. Although the hospitality sector is known for its steady bankruptcy rates, it was among the highest gainers in trade intensity (+10.3%), alongside agriculture (+9.3%) and construction (+4.5%).
Prompt payers in Q3
Companies paid more promptly in the third quarter of 2024 than in the previous quarter. On average, payments were made 9.12 days after the due date, compared to 10.09 days in the previous quarter. Nearly six out of ten companies (59%) paid their invoices on time, compared to 57.78% a quarter earlier and 60.26% a year ago.
Among the companies that paid late, one-third (32.6%) were between 31 and 60 days overdue, a decrease compared to the previous quarter. The number of companies that took more than 90 days to pay increased slightly to 3.18%, up from 3.12% in the previous quarter. Payment delays rose notably in sectors such as mineral extraction (+4.26 days) and hospitality (+1.73 days), while companies in the hotel sector (-2 days) and agriculture, forestry, and fishing (-0.69 days) paid faster.
Outlook for Q4 and Further Risks
โFor the fourth quarter of 2024, I expect the number of bankruptcies to rise again to the higher levels seen in the first half of this year," concludes De Goeij. โIn 2024, bankruptcies cost nearly 18,000 jobs; however, unemployment remained stable and even decreased by 0.4% between the first and second quarters. This shows that new businesses, along with growth in other companies, are partially offsetting job losses. External factors, such as weak economic performance in Germanyโa key trading partner for Belgiumโremain a risk. If the German economy slows further, it could heavily impact both Belgian exports and employment."
View the full report here.
