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Swedish Bankruptcies rose in 2012 and the future still looks bleak

Tuesday, 08 January 2013
The level of Swedish corporate bankruptcies reached 10 percent more in 2012 than in 2011, data from credit information company UC out on Tuesday show. The future of the Swedish corporate sector, especially the smaller and medium size companies still look bleak.

The number of corporate bankruptcies totalled 550 in December, which was virtually unchanged from the same month in the 2011, the data show.

For the period January through December, the number of corporate bankruptcies recorded where up to 6659 individual cases, 10 percent more than in the corresponding period of the 2011.

As for all the failures, these amounted to 624 in December, a decrease of 4 percent compared with the same month last year. For the whole of 2012 all the bankruptcies reached 7805, an increase of 8 percent over the previous year.

UC notes that the fall of corporate bankruptcies that followed after 2009, when the financial crisis peaked seemed to have reversed. That is blamed on the fact that Sweden is drawn into a recession, caused mainly by the economic turmoil outside its reach.
"The Swedish companies have been hit by weaker demand in the gradually growing recession. Sweden, and especially Stockholm, survived long well but in 2012, the business bankruptcies increased where competition reached its peak. Both the service industry and manufacturing industry has had a tough year and especially hit are companies with extensive export business, "said Roland Sigbladh, Marketing Manager at UC.

The increase was greatest in the wholesale trade, construction and transport and Stockholm contributed much to growth of the fall. In December the bankruptcy increase stalled, something UC, described as temporarily.

This is because for 2013 it is expected that there would be continued bleak outlook for companies as several problems, mainly in the Swedish main markets in the EU remain problematic. Swedish companies need to aggressively seek new markets or that the government does something to the economy so that it would be able to make a fresh start. If not bankruptcies would just keep on rising.
by Scancomark.com Team

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