Rotterdam, July 25, 2024 โ The number of bankruptcies in the Netherlands increased by 35.9% in the first half of 2024 to a record number of 2,027, according to an analysis by business data expert Altares Dun & Bradstreet. This marks the seventh consecutive quarter of increase, with trade, construction, and financial services being the hardest-hit sectors. Meanwhile, trade intensity in Q2 rose to 83.6, with notable growth in hotels, retail, and agriculture.
Dutch companies traded more intensively in Q2
After two consecutive quarters of decline in national trade, trade intensity in the second quarter of 2024 rose to 83.6, an increase of 1.4 points compared to the previous quarter. This increase was visible across all sectors, with the largest changes in hotels (+5.8), retail (+3.1), restaurants and cafes (+2.8), and agriculture, forestry, and fishing (+2.8).
Significantly more bankruptcies in the first half of 2024
In the first half of 2024, 2,027 companies went bankrupt. This represents a 35.9% increase compared to the same period last year when there were 1,492 bankruptcies. This is the highest number we have seen in the first six months of any year in the past five years. Most bankruptcies occurred in trade (383), construction (296), and specialized business services (224).
In the second quarter of 2024, the number of bankruptcies increased for the seventh consecutive quarter. This represents a 1.1% increase compared to the previous quarter, amounting to 1,019 bankruptcies. This is a 33.4% increase compared to the same period last year, when there were 764 bankruptcies. In the second quarter, most bankruptcies were registered in South Holland (190), North Holland (187), and North Brabant (181), with the trade (184), construction (148), and financial services (110) sectors being the hardest hit.
Bankruptcies continue to rise in Q3 and Q4
The economic development of the Netherlands shows peaks and troughs. In the Spring Memorandum, the Ministry of Finance revised the economic growth forecast from 1.5% to 1.1%. In the first quarter of 2024, the economy still contracted by 0.5%.
"The ongoing decline in Dutch exports and their decreasing value are hindering our recovery. The combination of economic slowdown, high inflation and interest rates, the end of government support, and global challenges is putting significant financial pressure on companies. Although an increase in bankruptcies is to be expected, the risk remains relatively limited. This is because the number of companies in the Netherlands has grown over time. When we compare the bankruptcies to the total number of companies, we see that the risk level is not yet alarming," says Barry de Goeij, senior data scientist at Altares Dun & Bradstreet.
"The Netherlands is also facing power grid issues, which particularly affect new entrepreneurs. This hampers the growth of the Dutch business landscape while the number of bankruptcies continues to rise. However, we currently do not see any signs of an explosive increase in bankruptcies," says De Goeij.
