In the last twelve months, 6,311 companies have gone bankrupt or have been forced to shut down, according to figures from analysis company Bisnode.
- “Bankruptcies are an important indicator of how things are doing in Norwegian business. When we now see that we are approaching that level during a financial crisis, it is a little worrying,” says credit economist Per Einar Ruud of Bisnode.
The number of 6,311 bankruptcies in the past year is equal to the level of bankruptcy during the financial crisis of 2009. At that time, 6,449 companies went bankrupt.
Ruud points out that the weak krone is favorable for export companies, but that a large part of Norwegian businesses are based on sales of import goods.
- “When the weak krone causes the purchase price to rise, prices must be set to keep margins. But many industries are experiencing such great competition that it is impossible to do so. Then it can quickly end up in bankruptcy law,” says the credit economist.
The analysis company Bisnode states that the bankruptcy figures give a picture of how things are going in a business world as a whole.
- “Bankruptcy for a company provides powerful effects for other companies that do not get their money, so they themselves run the risk of shutting down. It is therefore important that you take good care of the businesses you trade with and regularly check your credit performance,” says Ruud.
© NTB Scanpix / #Norway Today