Belgian businesses saw a 10.6% rise in bankruptcies last year, although they still fared relatively well compared to other Western European economies.
A report by German research firm Creditreform has highlighted that 169,496 businesses across 17 Western European countries went bankrupt in 2023, marking a staggering growth of nearly 21% compared to the previous year.
Rising levels of business bankruptcy in Belgium has resulted in thousands of job losses, with more than 15,000 roles having disappeared last year alone.
The spike in bankruptcies was even more pronounced in some countries, as the Netherlands saw a 54.9% surge in companies unable to pay their debts, while France saw a 35.6% increase.
Belgium ranked in sixth place among the 17 countries analysed, as only Denmark, Luxembourg, Spain and Portugal saw a reduction in bankruptcies.
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For the first time, these figures have outpaced pre-pandemic levels. Creditreform's Head of Economic Research, Patrik-Ludwig Hantzsch, noted that last year's insolvency activity was "underscored by the recession."
"Inflation, interest rates, energy costs and the lingering repercussions of the Covid-19 pandemic have severely battered many businesses, which is plainly evident in the current figures," he said.
A separate report in January noted that bankruptcies in Belgium last year surged to the highest level since 2017, with construction and hospitality sectors suffering most.
Creditreform forecasts that the number of business failures will continue to escalate this year.
