Bank of France reports highest business closures since 2017

As many as 55,500 enterprises ceased their operation in France in 2023, which became a record since 2017.

These indicators were primarily affected by a significant increase in the cost of energy, as well as rising interest rates and, as a result, the cost of financing, Gazeta.ru reports, citing the data of the Bank of France.

The bulk of the bankruptcies – 43 per cent - came from trading and construction companies, mostly small businesses. However, many large companies also ceased operations in 2023: 72 per cent more than the average for the previous decade.

The Bank of France report indicates that during the COVID-19 pandemic, the number of bankruptcies in the country declined markedly thanks to government support, but then began to rise again.

Between 2000 and 2009, an average of 49,000 businesses went bankrupt in France per year, and between 2010 and 2019, about 59,000 per year.