Rise in business failures: the Banque de France points to economic factors
The Banque de France recently published an analysis on the financial health of French companies. According to the institution, the number of struggling businesses continues to rise across the country. This trend is no longer explained solely by the consequences of the health crisis, but by more structural economic reasons.
For several years, experts spoke of a "catch-up effect." After the Covid-19 pandemic, many fragile companies that had been protected by state aid eventually filed for bankruptcy. Today, the Banque de France believes that this phenomenon is "largely exhausted" for the majority of the French economic fabric.
However, the situation remains mixed depending on the size of the structures. While large companies and SMEs seem to have moved past this catch-up phase, micro-enterprises are still in a difficult transition period. These very small structures are often more vulnerable to market changes and the current economic climate.
In conclusion, this rise in failures marks a new stage for the French economy. Companies must now face classic economic challenges, such as inflation or falling demand, rather than the direct effects of past health measures. The Banque de France continues to closely monitor these indicators to assess the strength of the private sector.