Austrian Economy on the Brink: Record Bankruptcies and Grim Forecasts

Austrian Economy on the Brink: Record Bankruptcies and Grim Forecasts Austrian Economy on the Brink: Record Bankruptcies and Grim Forecasts Topics: News, Economy.

In 2024, the Austrian economy faced shocking records: the number of corporate bankruptcies reached 6,550, averaging 18 insolvencies per day. This situation led to a total debt burden of €18.3 billion, the highest figure in Austria’s history. The 30.8% increase in debt compared to 2023 underscores the severity of what is happening. Experts have already raised the alarm, forecasting bleak prospects for 2025.

Among these figures, the major bankruptcy of Fisker GmbH, a subsidiary of the American electric vehicle manufacturer, stands out. The company’s debts amounted to nearly €3.8 billion. It is followed by cases linked to prominent businessman René Benko and the KTM group, with debts of €1.8 billion. These bankruptcies affected around 30,200 jobs, highlighting how deeply this wave of insolvencies impacts not only the companies themselves but also their partners.

Key factors driving this situation include high energy prices, rising raw material costs, and a shortage of skilled labor. The economic climate remains challenging, with many companies — particularly in retail, construction, and hospitality — facing serious difficulties. Karl-Heinz Götze, head of the insolvency department at KSV1870, warns that the more companies encounter problems, the higher the risk that even financially stable firms will begin to experience liquidity issues. Currently, only 48% of companies report a good business climate — the lowest figure since 2020.

Forecasts for 2025 offer little comfort: experts expect the number of bankruptcies to range between 6,500 and 7,000. The situation calls for new economic stimulus and active government policy to support businesses. As Götze put it, “We are not at the end of the crisis — we are in the middle of it.” This statement only underscores how difficult Austria’s current economic reality truly is.