New statistics show that a total of 803 limited companies in Sweden were declared bankrupt during April. This represents a decrease of 15 percent from the previous year and constitutes the sixth consecutive month in which the total bankruptcy level has fallen.
For e-commerce, a decrease in the number of bankruptcies of 35 percent was noted during the month. Looking at the first four months of the year, the decline for e-commerce is 25 percent. The physical retail sector is following the same direction, with 11 percent fewer bankruptcies in April and a decrease of 12 percent accumulated so far this year.
Henrik Jacobsson, CEO of Creditsafe, explains the development with a stabilization of the macroeconomic factors:
The downward trend persists and bankruptcies continue to decrease. Lower interest rates, subdued inflation and strengthened consumption give companies better conditions. It is a sign that the Swedish economy is on its way out of the recession, but the recovery is still fragile.
At the same time as the number of bankruptcies decreases and new business start-ups in the country increase by 15 percent since the turn of the year, economic challenges remain for many companies. Of the companies that went bankrupt in April, 19 percent had an ongoing temporary deferral of tax payments. Jacobsson also points out that the global situation affects companies' margins and future prospects:
The geopolitical situation means that many companies are keeping a tight rein on costs. A new energy crisis with rising oil prices could quickly have an effect. It is no longer headwinds - but neither a strong tailwind, says Henrik Jacobsson.