red house in Sweden

Sweden sees highest amount of bankruptcy filings recorded in almost a decade

During the second half of 2022, the number of bankruptcies in Sweden rose to the highest level since almost a decade, where similar number was last recorded in 2013.

According to UC, a business and credit reference agency, nearly 3,500 companies filed for bankruptcy. These bankruptcies are mainly as a results of the conflict in Ukraine and the accelerating rate of inflation and high electricity prices in Sweden.

Speaking within a press release, UC economist Johanna Blome noted than as the country eased the COVID-19 pandemic-related restrictions in 2021, that year saw the lowest number of bankruptcies on record. However, the latter half of 2022 saw a dramatic downfall.

“Ahead of 2022, optimism was high, not least as a result of the record low number of bankruptcies in the past year and the removal of pandemic restrictions. A bright future was predicted for Sweden’s entrepreneurs and small business owners, but unfortunately, the year (2022) instead offered a series of unpleasant surprises that affected both the Swedish and the global economy,” explained Blome.

Blome followed by stating, “Many companies face a tough 2023. Smaller companies can suffer from setbacks in liquidity as a result of increased electricity and purchase costs as well as interests.”