As of the end of September 2024, 4,465 companies in Poland have declared insolvency, representing 95% of all firms that initiated insolvency proceedings this year, according to a quarterly report by Coface. Experts predict that this number may reach 5,000 by the end of the year, marking a potential record high.
Despite Poland’s overall economic recovery and positive GDP growth, businesses face persistent challenges, including high fuel and energy costs, rising operational expenses, and a reduced demand for exports. The economic struggles of key trading partners, particularly Germany, which remains in recession, are exacerbating the situation. As a result, the number of insolvent companies in Poland is 23% higher than in the same period last year.
The construction and transport sectors are among the hardest hit. Nearly 60% of this year’s insolvency filings come from specialized construction firms, particularly small-scale businesses that have struggled to secure sufficient contracts. The transport sector also saw a sharp increase, with companies from the transportation, shipping, and logistics sector now representing 14.2% of all insolvencies.
In terms of regional impact, the most insolvencies have been reported in the Mazowieckie (818 firms), Śląskie (586), and Wielkopolskie (482) provinces. Meanwhile, Świętokrzyskie recorded the lowest number of insolvencies in the third quarter of 2024.
As the year progresses, experts warn that external economic conditions, especially in Germany, and rising labor costs could lead to even more insolvencies, with predictions that the number of insolvent companies could exceed 5,000 by year-end.