Of 1,222 companies what were made insolvent in 2023, 406 were active in the previous year, which is a 165% increase from 2022 when they were 153. There was an approximately threefold increase of insolvencies in Construction, where they were 150, as well as in Wholesale and retail trade and vehicle repair, where they were 57. There were 56 insolvencies in Tourism industries (155% increase) and 143 in other industries (131% increase).
On average, there were 1,991 employees in the previous year in companies made insolvent in 2023, which is a 139% increase from 2022, when they were 834. There was an increased effect of insolvencies in 2023 in all activities, judging from both the number of employees and VAT turnover in the previous year.
21 insolvencies of active companies in December
There were 56 corporate insolvencies registered in December 2023. Thereof, 21 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 9% decrease from December 2022.
704 employees of insolvent companies in the fourth quarter of 2023
On average, there were 704 employees in the previous year in companies made insolvent in the fourth quarter of 2023, which is a 56% increase from the fourth quarter of 2022, when they were 450. Judging from both the number of employees in the previous year and VAT turnover, there was an increased effect of insolvencies in the fourth quarter of 2023 in Construction, Wholesale and retail trade, and Tourism related activities, while there was a decreased effect in other industries combined.
About the data
The data on bankruptcy and prior company activity is collected according to the ISAT2008 industry classification system for construction, wholesale and retail, and vehicle repair industries, and Tourism industries are classified according to Eurostat definitions, with the addition of classifications H52.32 and S96.04. The number of insolvencies for the latest month are temporary estimates and are subject to change with increased information on insolvency registrations from judicial authorities.
Statistics Iceland will henceforth publish updates on insolvencies on a quarterly basis, typically within 30 days of the end of the quarter.