The number of insolvencies of companies in Poland increased by 26% in the first half of 2024, compared to the first half of 2023. These data show that the liquidity situation in Polish enterprises is alarming and difficult. However, when compared to what happened since 2023 – when the number of insolvencies increased by almost 60% – it can be said that the growing trend has been halted. Many companies threatened by a difficult liquidity situation may resort to more legal solutions that have been provided for in recent years under Polish law. First, in 2016 restructuring measures were introduced, later in the COVID-hit year of 2020, fast recovery proceedings were introduced. Both solutions are now permanently in the Polish legal system, and entrepreneurs are more willing to use these legally provided forms. It is also worth paying attention to the macroeconomic situation and the business environment in which companies operate. 2023 was a poor year, with low economic growth. The current improvement is also not a full economic recovery – even though economic activity is improving. There is also increasing pressure on margins as labour costs increase. Additionally, salaries are rising – for entrepreneurs, especially the smaller ones, the increase in the minimum wage or the increase in average wages in Poland is a significant burden.
“Not all companies are able to cope in the market, the transport industry is an example where the increase in the number of insolvencies of enterprises was very high,” Grzegorz Sielewicz, the chief economist of COFACE in the Central and Eastern Europe region, told eNewsroom.pl. “This is an industry that is very dependent on what is happening in foreign markets in the German economy, as Polish road carriers mainly provide services in foreign markets. When it comes to international freight, we are the largest carrier in the European Union. And all this means that the transport industry feels this slowdown, or decline in the foreign markets – especially in Germany – as not only a risk factor but a materializing risk. I will not mention here other actions, such as the European Mobility Pact, which is becoming more and more restrictive and is beginning to eliminate Polish carriers from the foreign market, or for example staff shortages, which transport feels more than the whole economy. Looking generally at insolvencies we expect that we will really not observe such high growth, as in previous years – but still 2024 will end with an increase in the number of bankruptcies and insolvencies of companies. According to our estimates, this increase will reach 15% compared to last year,” estimates Grzegorz Sielewicz.
Source: https://managerplus.pl/niewyplacalnosci-firm-w-polsce-na-rekordowym-poziomie-wzrost-o-26-w-i-polowie-2024-r-98994
