Business insolvencies in France: new year starts where the old year left off
January 2017 saw the drop in insolvencies, which started in May 2014, reach 58,031 - its lowest figure since September 2012 (-2.8% on the same period in 2016). At the start of 2017 one company in 72 was failing on average over the course of the year (one in 56 in 2011). The trend is expected to continue. Coface forecasts a further 1% slide in insolvencies in 2017 against 2016. The Coface model takes account of the predicted growth in GDP and company margins). More good news is that the number of employees caught up in company insolvencies has fallen 2.6% (to 179,619).
The number of new companies rose 9.8% over the year (331,239, excluding autoentrepreneurs). This is another indication of company dynamism and has almost returned the figure to pre-crisis levels (340,686 foundations in August 2008). However, more new companies will also mean a negative secondary impact of more insolvencies. Three companies in ten fail in their first three years according to INSEE.
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