Coface: Minimal GDP growth in the region, insolvency also increased

By: Trademagazin Date: 2024. 05. 16. 12:50

As a result of the economic downturn, the number of corporate insolvencies – i.e. liquidation and bankruptcy proceedings – increased dramatically in Central and Eastern European (CEE) countries during the year 2023. While businesses initially weathered the storm during the pandemic with government support measures, the later withdrawal of these initiatives together with the macroeconomic pressure sent insolvency rates to new heights, according to the annual analysis of the insolvency situation published by the credit insurance company Coface, which also details the situation in Hungary.

As a result of the unfavorable economic environment, the region’s GDP rose by only 0.5 percent in 2023 after a 4 percent increase in 2022. And this is the worst result since 2000, excluding the fall in 2009 due to the deepening global crisis in 2008 and the fall in 2020 due to the coronavirus epidemic.

Among the regional countries, in addition to Hungary, GDP decreased in the Czech Republic, Estonia, Latvia and Lithuania – this significantly contributed to the fact that the overall regional result shows only a minimal expansion.