Impact of financial crisis locally contained
Bisnode now presents an aggregate report of bankruptcies and foundations for the second quarter of 2012. The report indicates a slight increase in bankruptcies and a decrease in the number of foundations. But it also tells a story of economic stability in the parts of Europe that are not directly affected by the government funding crises.
In spite of the financial crisis in the region, the Bisnode report indicates economic stability in the countries that are not directly affected.
“At the moment we are looking at financial crises in parts of the region, but not a regional economic crisis outside of the affected countries. Businesses are still doing quite well in the Nordics and in the DACH region. The sharp economic downturn in countries such as Spain and Greece is due to the fact that the governments are weakening the economy from various angles to overcome the critical indebtedness. They will not have the force to hamper the negative trend by acting counter cyclically in the face of economic slowdown,” says Arvid Brackrogge, Director Bisnode Scoring Group.
Regional business stability
On an aggregate level, the report shows that the number of insolvencies in the region was up for the third consecutive quarter with an increase of 2.9 % compared to the first quarter.
“The report indicates that insolvencies have increased during the second quarter. But if you look at the figures from a regional perspective you will see that there is actually a decrease in insolvencies in the Nordic region, and that the numbers for the DACH region remain stable. Hungary contributes disproportionally to the increase with a 28.0 % year on year increase in insolvencies, says Arvid Brackrogge,.
The equivalent number for foundations is -3.9 %, indicating a weakening economy for the region.
“Indicative of a regional contraction is, however, the decrease in foundations, which is a trend to keep a close eye on throughout the year”, says Arvid Brackrogge.
The full report is available at: http://www.bisnode.com/europeanreportPrint