However, overall bankruptcies remain at sky-high levels, and new business startups continue to decline.
In June, bankruptcies decreased by four percent compared to the same period last year, according to new figures from the business and credit information company Upplysningscentralen (UC).
“Finally, the trend is reversing. Since August 2022, bankruptcies have been increasing month after month, and the reduction we are now seeing is expected to continue,” predicts Gabriella Göransson, CEO of UC.
Looking at the first six months of the year, bankruptcies were still 40 percent higher than during the same period last year. The number of new businesses started is also fewer compared to June 2023—a decrease of 26 percent.
UC interprets the recent decrease in bankruptcies as a positive effect of, among other things, the Riksbank’s interest rate cut in May. However, it will take time before Sweden returns to a normal economic state. Many businesses still have tax debts from the pandemic that needs to be paid.
In the hotel and restaurant industry, bankruptcies decreased the most in June, by 38 percent compared to the same month last year. This sector, consisting of businesses with small economic margins, was hit hard by the pandemic.
“The decrease is from very high levels, which explains part of it. But it also shows an optimism among households choosing to spend money on dining out again,” says Gabriella Göransson.
In retail, bankruptcies decreased by 13 percent, and in wholesale by six percent, compared to the same month in 2023.
However, bankruptcies in the construction sector continue to increase.
“The increase is still low compared to the catastrophic figures we have seen earlier. The improvement may be due to households daring to make larger investments, such as building houses. It’s the construction companies closest to consumers that have been most affected by bankruptcies,” states Gabriella Göransson.
SpotlightSweden 
SpotlightSweden