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Switzerland – Business bankruptcies on the decline in 2020

The number of business bankruptcies fell by 21% in the first nine months of 2020 compared to the same period in 2019, according to a study conducted by the collection firm Bisnode.

There are significant disparities in Switzerland with regard to the risks of bankruptcy.  The timber and construction industries are particularly threatened by insolvency.

There are significant disparities in Switzerland with regard to the risks of bankruptcy. The timber and construction industries are particularly threatened by insolvency.

KEYSTONE

The number of business failures fell by 21% year-on-year from January to September 2020, pushing back even further the wave of business failures expected due to the pandemic.

According to the collection firm Bisnode, which conducted the study, this corresponds to 2,760 bankruptcy proceedings.

The number of business bankruptcies has only increased in four cantons, three of which are in eastern Switzerland, according to a study published by Bisnode on Monday.

The month of September 2020, for example, was less destructive of firms than last year, since the number of bankruptcies fell by 16% compared to the same month of 2019.

New companies

On the contrary, the number of newly created companies increased slightly by 2% over one year during the period January / September to 33,573 new registrations in the commercial register.

This indicator even increased by 18% over one year in September alone, to 3,791 new companies registered in the commercial register.

Inequalities between sectors

This solidity does not hide the real disparities which separate the Swiss economic sectors. Bisnode thus emphasizes that the wood and furniture industry has 2.7 times more risk than others of falling into insolvency.

Same danger on the construction side, a sector which is 2.4 times more at risk than the average.

Finally, hotels and restaurants and crafts have a risk of insolvency 2.2 times higher.

Booming sectors

According to the study published by Bisnode, it is companies focused on personal services, health in general and business service providers that are among the booming economic sectors.

On the other hand, the printing and publishing industry, the mining industry and the construction sector are particularly lagging when it comes to business creation.

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