Drastic rise in bankruptcies could hit industries: ABN AMRO
ABN AMRO experts predict bankruptcies will intensify this year and next due to soaring energy prices and the phasing out of government handouts, according to a bank report. Most bankruptcies are expected to occur in the transport and logistics sector.
Government support for businesses during the coronavirus pandemic and multiple lockdowns is due to expire on April 1. The government has deemed the aid schemes no longer necessary now that most of the coronavirus-related restrictions on society have been lifted. ABN AMRO expects a withdrawal of wage support measures to increase the number of bankruptcies, dragging more people into the labor market.
Bank experts suspect there will be fewer bankruptcies in the restaurant sector as it has mostly reopened and is experiencing staff shortages. The catering sector has been particularly hard hit judging by the number of applications to NOW, a corporate wage cost offset program, with more than half of all applications to the program coming from this sector.
Russia’s invasion of Ukraine has also pushed up gas prices. Companies heavily involved in energy could be pushed into bankruptcy: experts predict a 50% increase in bankruptcies in 2022 and 68% in 2023.