Portugal corporate insolvencies rise 58% in July

Corporate insolvencies in Portugal rose by 58% in July compared to the same month last year, reaching 163 cases, according to data from Iberinform. For the first seven months of the year, total declared insolvencies increased by 5.5%.

Insolvencies filed by the companies themselves grew by 2.8%, while those requested by third parties rose by 8.2%. Geographically, Lisbon recorded the highest number of cases since the start of the year with 256, followed by Porto with 221 and Braga with 138. While Lisbon saw a 14% year-on-year increase, Porto and Braga experienced decreases of 14% and 4.2%, respectively. Significant percentage increases were noted in Madeira (117%), Beja and Vila Real (100%), and Viana do Castelo (70%).

Sector-wise, the telecommunications industry saw the largest growth in insolvencies at 50%, followed by hospitality and catering at 29%, and other services at 17%.

Conversely, the creation of new businesses declined. In July, 3,695 new companies were established, representing a 21% decrease compared to July of the previous year.