Swedish bankruptcy wave at continued record level

Published 29 June 2024 at 13.12

Economics. The wave of bankruptcy continues among Swedish companies. According to the credit information company Syna, the number of bankruptcies this year has reached record levels, with thousands of lost jobs as a result.

Share the article

TwittraShare

It is particularly noteworthy that even larger companies with billions in turnover are forced to close down, says Karl Stjerna, CEO of Syna.

During the first half of the year, 5,475 companies were forced to throw in the towel, an increase of 42 percent compared to the previous year.

In June, bankruptcies increased by 11 percent compared to the same month the year before, with a total of 857 joint-stock companies going bankrupt.

A contributing factor to the increase in bankruptcies is the difficulty for many companies to pay back the tax deferrals that were granted during the pandemic.

During the year, the labor market has gradually weakened and the number of notices of dismissal has increased. Over 3,500 jobs were lost in June, with the construction industry most at risk.

The last few years have been extremely challenging for many bad companies, with the pandemic, rising interest rates, increased purchase prices and a weakened krona as reasons for the fragile situation .