In Finland, business bankruptcies increased by 14% in the first quarter of the year.
According to Statistics Finland's data, 772 bankruptcies were filed in the period January-March 2020, which is 95 more (or 14% more) than in the corresponding period of 2019.
These bankruptcies also affected the workers of these businesses. The number of employees in companies filed for bankruptcy totaled 3,417, which is 278 people (8.9%) more than in the previous year.
The Finnish statistical office downplays the impact of the coronavirus pandemic on first-quarter bankruptcy figures. According to Statistics Finland, the economic effects of this crisis are still not visible in the number of bankruptcies.
Bankruptcies increased in the main industries of construction (919), industry and mining (375), trade (455), accommodation and food services (238) and other services (867).
The main sectors
In absolute numbers, bankruptcies grew the most (+22.9%) in the main services sector, which comprises information and communication services, financial and insurance activities, real estate, professional, scientific and technical activities, administrative, educational, health, arts and entertainment services.
Bankruptcies decreased in the industries of agriculture, forestry and fishing, as well as transport an storage. In terms of numbers, bankruptcies decreased the most in the industry of transport and storage (-15.9%).
Initiating a bankruptcy does not always mean that a company or professional is "going bankrupt" in the strict sense of the term. Bankruptcy is a complex and multi-stage legal process in which the proceedings may be interrupted and businesses can be saved, for example after restructuring their debt.
