Rotterdam, October 22, 2024 โ A new report from business data expert Altares Dun & Bradstreet reveals that the number of bankruptcies in the Netherlands continues to rise, with a total of 3,097 bankruptcies so far in 2024. This figure is almost equal to the total number of bankruptcies in all of 2023. Altares Dun & Bradstreet also notes positive developments, such as an improvement in companies' payment behavior and an increase in trade activity in the third quarter.
Continued increase in bankruptcies
The number of bankruptcies further increased in the third quarter of 2024, with 1,067 bankruptcies recorded. This represents a 4.6 percent growth compared to the second quarter of 2024 and a significant 31.7 percent increase compared to the same period last year (810). This marks the eighth consecutive quarter of rising bankruptcies. So far, 3,097 bankruptcies have been registered in 2024, nearly matching the total for all of 2023 (3,203). Although this figure (3,097) is comparable to the number of bankruptcies in 2017, the overall risk level remains manageable due to the growth in the number of businesses in the Netherlands.
The trade sector (220 bankruptcies), construction industry (138), and specialized business services (92) were the hardest hit, while the largest relative increases were seen in the hospitality sector (+0.21%), transportation and storage (+0.18%), and manufacturing (+0.14%).
Trade activity shows resilience
Despite the continued rise in bankruptcies, trade activity is on the rise. In the third quarter of 2024, there was a 6 percent increase, bringing the index to 90.5 points. This reflects growing economic activity, particularly in sectors such as financial services (+14.53%), agriculture (+11.00%), and hospitality (+10.13%). The summer months provided a clear boost to the hospitality sector, driven by increased domestic consumption.
Improvement in payment behavior
There is also a slight improvement in the payment behavior of companies. In the third quarter, 90.44 percent of Dutch businesses paid their invoices on time, an increase from 88.47 percent in the second quarter. This indicates that many companies are still able to meet their financial obligations, despite growing pressures.
Slight contraction, but stable outlook for the fourth quarter of 2024
Data from the CBS shows that industrial production in the Netherlands contracted by 0.5 percent in August 2024. This continues the downward trend, although at a slower pace than in previous months.
"Possible causes include the economic challenges in Germany, a key trading partner for the Netherlands. These challenges could put further pressure on growth in the coming months, although this is not yet fully reflected in the export figures," says Barry de Goeij, Senior Data Scientist at Altares Dun & Bradstreet. "Still, the outlook for the fourth quarter of 2024 remains moderately optimistic. Despite lagging investments and the risks posed by the situation in Germany for exports, the Dutch economy is expected to remain stable, without significant fluctuations that would drastically impact growth."
