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Greater numbers of Swedish companies going bust

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14:58 CET+01:00
Companies in Sweden are going bankrupt at an ever faster pace, new statistics show.

During November, 38 percent more businesses went bust compared to the same month last year, according to the latest figures from credit information company UC.

In October, the increase was 19 percent, and so far in 2008, bankruptcies are up 10 percent compared to the same period last year.

Most affected are companies in the auto industry in Västra Götaland and Skåne counties.

In addition, nearly half of the companies which declared bankruptcy this year are less than four years old and had a turnover of less than 10 million kronor ($1.2 million).

All told, 641 companies went out of business in November this year, compared to 465 in November of last year.

So far this year, 4,935 companies in Sweden have declared bankruptcy, compared to 4,491 last year.

The transportation industry has been the hardest hit by bankruptcies in 2008, with filings up 50 percent for delivery, taxi, and other transport services.

“For the most part, bankruptcies have affected small companies so far, which means that the social and economic consequences are small. But if the economy continues to deteriorate, even more established and larger companies are going to be affected and a spiral of bankruptcies can occur. Then the effects will be substantially larger,” said UC's Fredrik Polland in a statement.

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