In the first six months of 2019, insolvency proceedings fell from a total of 3.067 in 2018 to 2.835 in 2019. This decrease translates to a year-on-year reduction of 7,6%.
The monthly average was 567 insolvency proceedings, the lowest figure since 2016, when this indicator stood at 777 insolvencies per month.
By type, up to the end of June, in contrast to 2018, 563 insolvency declarations were filed (-28,7%), insolvency was requested for 582 companies (-25,4%), and 28 insolvency plans were finalized (-34,8%). The only action with an increase of 14,3% was the declaration of insolvency of 1.662 companies, 208 more than in the same period of the previous year. This action corresponds to the conclusion of a process regardless of the date it was initiated.
In absolute terms, Porto (711), Lisbon (589) and Braga (344) top the list of districts with the highest number of insolvencies. While the capital city recorded a 33,3% reduction compared to 2018, Porto saw a 7,2% increase and Braga saw insolvencies grow by 35,4%, the largest increase in the semester.
In total by district, 12 recorded reductions, with the most significant values belonging to Vila Real (-52,2%), Castelo Branco (-42,9%) and Guarda (-34.2%). Eight districts increased the number of insolvencies, with the most significant increases in Braga, Horta (33,3%) and Aveiro (9,2%). Portalegre (16) and Angra do Heroísmo (10) maintained the performance of 2018.
Districts with a decrease in insolvencies account for 38,9% of the total insolvencies, while those with an increase are responsible for 60,1% of the 2.835 insolvencies recorded in the semester.
Electricity, Gas and Water (-64,3%), Extractive Industry (-36,4%) and Other Services (-22,4%) are the sectors with the largest reductions. Increases were seen in four sectors: Telecommunications (33,3%), Agriculture, Hunting and Fishing (20,5%), Manufacturing (15,9%) and Transport (10,6%).
More than 27 new companies by June.
27.088 new companies were created by the end of June, a figure that translates to a growth of 9,9% compared to 2018. However, June registered a decrease of 20,9% compared to the same period last year and was the only month of the semester to show a negative value compared to last year.
In 2019, the monthly average was 4.515 new business formations. In 2018, this figure was 4.108, and in 2017 it stood at 3.653.
Lisbon leads the ranking of new company formations, with 8.803, followed by the Porto district, with 4.920, and Setúbal, with 2.093 new companies formed. All districts saw an increase in new formations, with the largest variations recorded in Horta (84%), Castelo Branco (29,9%) and Bragança (27,4%).
The Lisbon district continues to have a significant weight in attracting new companies (32,5%), although its position has decreased by 1,8 percentage points compared to 2018. The second position belongs to Porto, at 18,2%, which increased by 0,3 percentage points, as did Setúbal (7,7%). The main gain in position belongs to Aveiro, which evolved from 4,4% in 2018 to 4,9% in 2019. 11 districts maintain their weight relative to 2018 and ten show positive variations, ranging between 0,1 and 0,5 percentage points.
By sector, the negative variations were recorded in the activities of Telecommunications (-9,8%), Hotels/Restaurants (-2,7%) and Wholesale Trade (-2,4%). The largest increases were seen in the areas of Transport (120,3%), Electricity, Gas and Water (79,1%) and Construction and Public Works (33,6%).
