Good condition of the Czech economy will help domestic companies to perform better. This is also reflected in the fact that the number of companies that are not produced will decrease. This year, about 1,120 companies in the Czech Republic, which will be at least in the last ten years, will go bankrupt, with five euros, citing a study by the Euler Hermes insurance company.
The record number of pads was recorded by the Czech Statistical Office in 2000, and since then their number has been steadily declining. According to the level of the insurance company, this is due to a long period of strong economic growth.
However, companies currently need to be low on unemployment, inflation, rising personal costs, record strong crowns, drama energy and other negative influences.
“It is important that most of the negative factors are only temporary, and most companies deal with them. And if these factors lasted for many years in a row, we would probably be able to re-establish the number of insolvent companies, ”said Cyrrus analyst Marek Hatlapatka.
Approximately 2.5 million business entities are registered in the Czech Republic. The study is based on the worlds largest database of companies managed by Euler Hermes. In addition to the Czech Republic, the database maps 32 other countries. Among other things, the connection between GDP growth and then bankruptcy can be addressed.
| Number of insolvent companies | |
| Year | Poet |
| 1998 | 2 022 |
| 1999 | 2 000 |
| 2000 | 2 491 |
| 2001 | 2 473 |
| 2002 | 2 155 |
| 2003 | 1 728 |
| 2004 | 1 460 |
| 2005 | 1 282 |
| 2006 | 1 278 |
| 2007 | 1 150 |
| 2008* | 1 120 |
| Source: Euro, * = estimate | |
