Increase in Business Insolvencies in Austria Amid Economic Challenges
Austria's business landscape saw a challenging year in 2024, with a significant increase in corporate insolvencies driven by economic factors such as rising inflation, recession, and the end of pandemic-related support. While businesses struggled, a notable rise in new company formations offered a mixed picture.
In 2024, the number of corporate insolvencies in Austria surged by 29.1%, reaching 3,628 cases—the highest since 2020. / Picture: © Vindobona.org
In 2024, Austria faced a sharp increase in business insolvencies, which rose by 29.1% compared to the previous year, marking the highest level since 2020. The surge in insolvencies is largely attributed to factors such as inflation, economic recession, and the expiration of pandemic-related financial assistance. Among the hardest-hit sectors were real estate, which saw a staggering 86% increase in insolvencies, as well as manufacturing and architecture.
Despite these economic challenges, Austria also witnessed a rise in new business formations, with 21,439 companies launched—up 7% from 2023. This increase in new ventures signals an ongoing spirit of entrepreneurship, even in the face of economic uncertainty. Regions such as Carinthia and Upper Austria led the way in new business registrations, while Burgenland and Vorarlberg experienced the highest rise in insolvencies.
In terms of regional variations, the increase in business failures was widespread across Austria. Burgenland and Vorarlberg were the most affected, with insolvencies climbing by 55% and 52%, respectively. Meanwhile, Vienna saw 1,647 cases, a 26% increase. However, Carinthia and Upper Austria showed more resilience, not only reporting the highest number of new businesses but also experiencing a relatively smaller increase in insolvencies.