Insolvencies continued to increase in Portugal, with the number of insolvency declarations growing 5.1% by the end of August, 55 more insolvent companies than in the same period last year. Insolvencies requested by third parties increased 7.1%, while those filed by the companies themselves grew 3.1% to 619, according to data from Iberinform, a management solutions subsidiary of the Crédito y Caución group.
The most affected sectors were hospitality and restaurants, with a worsening of 36.2% in declared insolvencies, followed by other services with a rise of 15% and construction and public works with 13%. Geographically, Lisbon concentrated the highest number of insolvencies with 271 cases, followed by Porto with 242 and Braga with 154.
In contrast, the creation of new companies fell 1.7%, with 36,047 companies established between January and August. The largest increases in company creation were seen in extractive industry with 20% and in construction with 13%, while the electricity, gas and water, agriculture and telecommunications sectors recorded the largest declines. Lisbon again led in company creation with 11,127 establishments, followed by Porto with 6,447 and Setúbal with 2,904.
