Brussels, July 29, 2024 – Belgium sees a slight decrease in the number of bankruptcies in the second quarter of 2024, according to a recent analysis by Altares Dun & Bradstreet. With 3,153 bankruptcies, the number decreased by 2.11% compared to the previous quarter, which saw 3,221 bankruptcies. The relative intensity with which Belgian companies conduct business also remains stable at 84.8 points. However, the risk of bankruptcy is now higher than ever since COVID-19.
Most bankruptcies occurred in the construction industry (746), trade (673), and hospitality (545), according to a detailed analysis by Altares Dun & Bradstreet. "Declining consumer spending particularly affected trade and hospitality. These sectors are inherently vulnerable to changes in consumer behavior.", says Barry de Goeij, senior data scientist at Altares Dun & Bradstreet. In terms of provinces, most bankruptcies occurred in the Brussels-Capital Region (433), Antwerp (421), and Liรจge (213).
Region | Number of bankruptcies | Percentage |
Antwerp | 421 | 13.35% |
Brussels-Capital Region | 433 | 13,73% |
East Flanders | 150 | 4,76% |
Flemish Brabant | 125 | 3,96% |
West Flanders | 113 | 3,58% |
Limburg | 86 | 2,73% |
Belgian companies pay slower in Q2
Companies paid slightly slower in the second quarter of 2024 compared to the previous quarter. On average, they did so 10.09 days after the due date, compared to 9.61 days in the previous quarter. Only 57.78% of companies paid their invoices on time, compared to 58.17% in the previous quarter and 60.51% a year ago.
Highest number of bankruptcies in Belgium in years
"If we extrapolate the bankruptcy figures from the third and fourth quarters of 2024 based on current trends, we will reach the highest number in years in Belgium. However, the risk of bankruptcy remains relatively low because the number of companies in Belgium continues to grow steadily."
"During the COVID-19 period, the risk of bankruptcy was exceptionally low due to government support. Now that companies have to repay their debts, exports are declining, and the Belgian economy is slowing down, the risk of bankruptcy is increasing to a more normal level."
"In 2022, the risk of bankruptcy was 0.92%, and in 2023, it rose to 0.98%. If this trend continues, we will reach a risk level of approximately 1.07%, comparable to that of 2017-2019. This would be the highest level since the COVID period, but still relatively low. Despite these expectations, there are currently no indications of an explosive increase in bankruptcies," said De Goeij.
View the full report here.