Skip to content
Search
Close
SHOP
  • News
  • Analysis
  • Commentary
  • Essays
  • Interviews
  • Reviews
  • Tributes
  • Media
Menu
  • News
  • Analysis
  • Commentary
  • Essays
  • Interviews
  • Reviews
  • Tributes
  • Media
  • NEWS

Swedish Bankruptcies on the Rise

One of the major problems for businesses that survived the pandemic is that many of them had significant back taxes to pay.
  • Sven R. Larson
  • — January 9, 2023
One of the major problems for businesses that survived the pandemic is that many of them had significant back taxes to pay.
  • Sven R. Larson
  • — January 9, 2023

In the second half of 2022, the number of Swedish businesses filing for bankruptcy increased by 22% over the same period in 2021. Entrepreneurial organization Företagarna.se has the story:

New statistics from the business- and credit-ranking company UC shows an increase in the number of bankruptcies as well as a decline in business start-ups. Compared to 2021 the number of bankruptcies increased by 5%last year. The increase was particularly strong the second half of the year, when 22% more businesses filed for bankruptcy.

Mr. Johan Grip, chief economist at Företagarna.se, is not surprised. The increase in bankruptcies, he explains, 

should be considered in the context of us coming out of a two-year pandemic, and when the restrictions were finally lifted the energy crisis hit, and the [central bank’s] interest-rate policy shifted. 

One of the major problems for businesses that survived the pandemic, Mr. Grip notes, is that many of them have had significant back taxes to catch up with. Combined with a decline in demand for their goods and services, this has put significant pressure on their finances. 

In a comment on the bankruptcy numbers, UC economist Johanna Blomé points to a stark contrast between the first and second halves of 2022:

There are big market-based differences between the first few months of 2022 and the situation we are in today—something we see reflected directly in the UC statistics, with a growing number of bankruptcies and fewer new businesses being started. 

She expressed concerns that this discrepancy could have broader economic repercussions. Adding the lack of targeted energy-cost support from government, Ms. Blomé points to the risk of a wave of employee layoffs. 

The labor-intensive accommodations industry, which includes hotels and restaurants, suffered a 29% rise in bankruptcies in December alone. In the retail industry, also heavily dependent on labor, bankruptcy filings were up 28%.

In addition to rising business bankruptcies, Sweden also faces a household debt crisis.

Sven R. Larson is a political economist and author. He received a Ph.D. in Economics from Roskilde University, Denmark. Originally from Sweden, he lives in America where for the past 16 years he has worked in politics and public policy. He has written several books, including Democracy or Socialism: The Fateful Question for America in 2024.
  • Tags: bankruptcies, Sven R. Larson, Sweden

READ NEXT

EU Hopes To Reform Electricity Market by April

Bridget Ryder February 4, 2023

European Commission: No Reason To Scrap Qatar Aviation Deal

Tamás Orbán February 4, 2023

France: New Day of Mobilisation Against Pension Reform

Hélène de Lauzun February 4, 2023

IMPRESSUM

SUBSCRIPTION

LOG IN

PRIVACY POLICY

CONTACT

[email protected]

© The European Conservative 2023

  • Impressum
  • Privacy Policy
  • General Privacy Policy
  • Terms & Conditions

Made by DIGITALHERO

Issue 25, Winter 2023

  • News
  • Analysis
  • Commentary
  • Essays
  • Interviews
  • Reviews
  • Tributes
  • Media
Menu
  • News
  • Analysis
  • Commentary
  • Essays
  • Interviews
  • Reviews
  • Tributes
  • Media
Search

About

SHOP

JOBS & VACANCIES

Login