In a startling revelation, the Bank of France reported that more than 55,000 businesses closed their doors in 2023. This marks the highest number of company closures since 2017, painting a grim portrait of the economic condition in France. The data, compiled at the close of December 2023, underscores the harsh reality that 55,492 businesses, on average, faced bankruptcy or liquidation over the past 12 months.

Details of the Report

The Bank of France‘s report provides a comprehensive overview of the state of business in the country. Despite the unsettling increase in closures, the bank was quick to point out that the current level is still below the average annual bankruptcies of 59,342 recorded between 2010 and 2019. Interestingly, the pandemic years of 2020-2021 witnessed a significantly lower number of bankruptcies, approximately half of the current figures.

Business Size and Impact

The report further unpacked the data to reveal that it was predominantly small and medium-sized enterprises (SMEs) bearing the brunt of the closures. Businesses with up to 250 employees accounted for the lion’s share of the total, with 55,435 closures. However, it wasn’t just the SMEs feeling the pinch. Medium and large companies, employing over 250 people, also experienced a surge in closures. Their numbers reached 57, doubling from the previous year.

Implications and Considerations

This uptick in business closures signals a pressing concern for the French economy. The reverberations of these closures extend beyond the immediate business landscape, impacting employment rates, fiscal policies, and the overall economic health of the nation. While the numbers are alarming, they serve as a stark reminder of the resilience required in navigating the current economic climate.