The worst month of the worst year

3rd October 2008, Comments 0 comments

The economic research bureau shows that the number of bankruptcies in Belgium rose last month, with hospitality and construction being the two most hard hit areas.

3 October 2008

BELGIUM -- Figures issued by the economic research bureau Graydon show that the number of bankruptcies in Belgium rose yet again last month. A spokesman for Graydon told journalists that it was the "blackest month and blackest third quarter of the blackest ever year."

A total of 927 companies went under in September, more than 18 percent up on the figures for September 2007.

Never before were so many bankruptcies recorded in the space of just one month.

The results for the whole of the third quarter are hardly encouraging either.
A record 1,825 companies went bust between July and September.

This is a rise of 15.9 percent on the figures for the third quarter of 2007.

A total of 6,118 companies went bankrupt between 1 October 2007 and 30 September 2008. This constitutes a year on year rise of 9.7 percent.

The number of jobs lost as a result of bankruptcy also went up sharply. The hospitality and construction sectors were the hardest hit.

The hospitality industry has been hit especially hard with a total of 1,112 firms going under in the industry during the past nine months.

The construction industry has also seen 908 companies going bankrupt.

According to Graydon, the large number of companies that have started up since 2006 is a major contributing factor to the rise in bankruptcies since the third quarter of 2007.

The fall in purchasing power has also started to push up the number of bankruptcies.

[ / Expatica]

0 Comments To This Article