2011 is a record year for bankruptcies

Last week, the figure of small businesses and companies going bankrupt in Belgium reached the mark of 10,000, a record number for our country. The previous record year was 2010, when we had 9,581 bankruptcies on 31 December.

Graydon Belgium, which is specialised in company credit checking, expects the number of bankruptcies to climb to 10,200 or 10,300 by the end of the year. The agency says there is more to it than the economic crises of 2008 and this year, as the vast majority of businesses throwing in the towel now, already had structural problems before 2008.

Other factors are the big number of very young companies and the diminishing purchasing power. Consumers are feeling the effects of life becoming more expensive, and spend less money in the hospitality industry or in shops. This creates a  knock-on effect. The impact of the present economic crisis cannot be seen yet in the statistics.