Construction recorded the largest increase in bankruptcies in 2019

The number of bankruptcies initiated in Finland increased in 2019.

According to Statistics Finland, in the January-December period 2,597 bankruptcy processes were opened, which is 63 (or 2.5% more) than a year earlier. The number of employees in companies filed for bankruptcy was 12,516, which is 411 (or 3.4%) more than the previous year.

Source: Statistics Finland.

Statistics Finland details in its release that the number of bankruptcies grew the most in the main sectors of construction and other services.

In the construction sector, 516 bankruptcies were filed, which is 40 (or 8.4%) more than in the previous year. In other services, 823 bankruptcies were initiated, 40 (or 5.1%) more than a year earlier.

The other services sector include financial and insurance activities, real estate, professional, scientific and technical activities, administrative and support services, educational services, health and social services, and arts, entertainment and recreation.

Source: Statistics Finland.

Bankruptcies decreased in trade

The number of bankruptcies decreased in the sectors of trade and transportation storage. The trade sector recorded the largest decrease: there were 463 bankruptcies, which is 31 (or 6.3%) less than a year earlier.

Bankruptcy proceedings affect companies, entities or individuals declared bankrupt within the calendar year. The beginning of bankruptcy does not necessarily mean that a company or a professional ends up in bankruptcy in the strict sense of the term.