According to a report by idealista, Informa D&B analysed the level of resilience of Portuguese companies and crossed it with the “Risk of Failure”, which reflects the probability of an entity ceasing its activity in the next 12 months with outstanding debts. And it concluded that in 2023 around 13% of companies are in a situation where it is more likely that they will not be able to withstand the current crisis. Around 23% of Accommodation and Restaurant companies are at greater risk of not being able to withstand the impact of the crisis that is approaching throughout this year.
In this study Informa D&B considers that there are companies in the construction and real estate sector at risk of not resisting the crisis current inflation. About 16% of these companies with real estate activities will face serious difficulties this year, says the document. And also the construction sector has 11% of companies at risk of closing.
This can be explained by constraints on both the supply and demand sides. The rise in material prices, the lack of labour (and being more expensive) and the delays in licensing further increase the builders' budgets, which end up being reflected in the final prices of houses, making them more expensive. On the other hand, inflation, the rise in house prices and the increase in interest on mortgage loans are already slowing down the purchase of houses.
“2022 was the year with the fewest closures ever”, concluded Informa D&B, which noted that during the past year 12,988 companies were closed, 8.8% less compared to 2021 “maintaining the downward trend that has been seen since 2012, with the exception of the first year of the pandemic”, they also explain.
On the other hand, 48,404 new companies were created in Portugal last year (+14% than in 2021), witnessing a “significant recovery after the sharp drop during the Covid-19 pandemic”. And this makes the balance sheet for 2022 very positive: between the increase in new companies and “the fall in closures and insolvencies, the result is a significant increase in active companies in Portugal, which at the end of 2022 are almost 550 thousand”, said Teresa Cardoso de Menezes, general director of Informa D&B.
This is funny.
There is an endless barrage of "experts" forecasting Portugals demise in 2023, especially in the real estate sector.
Germany has just agreed to send Leopard 2 tanks to the war zone, which also allows all the other countries in Europe to send their old L2 tanks.
Whilst this continues and Russia carpet bombs Ukraine - Portugal is at the end of the cul de sac offering good times for peanuts.
Warm, safe, no war makers, healthy fruit and veg, gorgeous countryside and coast line, cheap everything.......
Yea, I'm selling this place.
Set your stalls out and bring on the dancing girls.
By Joe from Alentejo on 28 Jan 2023, 12:21
Is that not a shame.
By J from Lisbon on 28 Jan 2023, 12:40
All wars are insane - no one wins
Truth is the first casualty.
Portugal (govt) has done nothing wrong. Neither have the Portuguese
People. The Ukrainians staying in Portugal, I believe, are thankful for the help.
Portugals geographical position right now is favourable - don't knock it. The more money circulating in Portugal - the more help it will be able to provide people and countries that need it.
Portugal does care.
By Joe from Alentejo on 30 Jan 2023, 11:45