Austria sees surge in corporate bankruptcies and drop in global competitiveness

In the first half of 2026, 3,401 Austrian companies filed for insolvency, averaging almost 19 bankruptcies per day. The trade, construction and gastronomy sectors accounted for about 44% of all cases, with the gastronomy sector alone seeing an 8.4% increase. Total liabilities of the bankruptcies reached roughly €4.2 billion, led by the Laura Privatstiftung insolvency with €1.7 billion.

The IMD World Competitiveness Ranking 2026 placed Austria at 29th, down from 16th in 2020 and 11th in 2007. The country also fell to 43rd in state efficiency, a key factor cited by the Austrian Business Federation. Critics point to high labor costs, extensive bureaucracy, slow administrative procedures and growing regulatory burdens as drivers of the decline, calling for faster permits, digitalisation of administration and broader reforms.

Both developments underscore mounting pressure on Austria’s economy, with widespread corporate distress and a deteriorating assessment of its competitive environment.