Insolvencies and activity of companies - ex
Experimental statistics on insolvencies changed into a regular publication
Statistics Iceland is now adding this publication to its regular publication of insolvencies of registered companies. Figures will be updated monthly with an accompanying news release on a quarterly basis.
As of 23 February, the following table will be updated monthly: Insolvencies and prior activity of insolvent enterprises by month 2009-2021. Further information is available in a news release from 23 February 2021.
Insolvencies and activity of companies
Statistics Iceland publishes data on insolvencies for registered companies on a monthly basis. Each publication is approximately 30 days after the end of each month, at which point most of the insolvency petitions have been registered by the Directorate of Internal Revenue. Some registered companies that go insolvent have had little prior activity. To better capture the effects of insolvency on the labour market and the economy, information about the average number of employees and turnover according to VAT reports in the last full financial year before the insolvency is presented.
Insolvencies enter the business register of the Directorate of Internal Revenue following the publication of an insolvency petition. Since some insolvencies are for companies that have not been active for some years, or even not at all, the number of insolvencies of registered companies may not necessarily capture the effects on the labour market and the economy in a meaningful way. Therefore, the number of insolvencies of registered companies according to The Directorate of Internal Revenue is compiled with the timeliest operational information on the average number of employees and turnover according to VAT reports for the last full year before insolvency.
It is our hope that information on the recent activity of insolvent companies will provide a more reliable initial indication of the effects of insolvencies on the labour market and the economy than can be obtained from the number of insolvencies of registered companies.
3100 employees at insolvent companies in 2020
Updated: 27 January 2021
There were 28 corporate insolvencies registered in December 2020. Thereof, 22 were for companies that were active in the previous year, i.e. they either had registered employees according to the official PAYE tax registry or turnover according to VAT reports. This is a 35% decrease from December 2019..
90 companies that were active in the previous year were made insolvent in the last quarter (Q4) of 2020, which is a 28% decrease from the same quarter in 2019 when they were 125. Thereof, there were 24 insolvencies in construction (38% decrease), 12 in wholesale and retail trade and vehicle repair (48% decrease), 25 in tourism industries (39% increase) and 29 in other industries (36% decrease). On average, there were 657 employees in the previous year for companies made insolvent in the fourth quarter of 2020. Thereof, 99 were in construction, which is a 61% decrease from the same quarter in 2019. In tourism industries, the same number was 301, which is a 54% increase from the fourth quarter in 2019.
There were 380 corporate insolvencies in 2020 for companies with activity in the previous year, which is a 9% increase from 2019 when they were 350. Thereof, there were 111 insolvencies in construction (16% increase), 60 in wholesale and retail trade and vehicle repair (2% decrease), 92 in tourism industries (48% increase) and 117 in other industries (11% decrease). Companies made insolvent in 2020 had 3121 employees on average in the previous year. Thereof, 965 were in construction, which is a 61% increase from 2019. In tourism industries, the average number of employees in the previous year was 1067, which is a 46% decrease from the previous year, when they were 1975. This decrease is in large part characterised by the insolvency of WOW Air in March 2019.
For information on insolvencies of registered companies, refer to: Insolvencies of enterprises by field of activity 2008-2020