EU economy shows rising bankruptcies alongside new business boom, Eurostat reports.

EU economy growth and bankruptcies data

The EU economy presented a paradoxical picture in the third quarter of 2025. While entrepreneurial activity saw a significant surge, the number of companies failing due to competition also reached a high level, according to Eurostat data. These figures highlight an environment characterized by both rapid growth and elevated risk.

The data suggests optimism among entrepreneurs, with the total number of new business registrations across the EU rising by 4% compared to the previous quarter. Notably, this growth was observed across all economic sectors.

The most significant boom occurred in future-oriented and logistics sectors, specifically: information and communication (+6.0%), construction (+5.9%), and transport (+5.5%).

Concurrently, bankruptcy declarations increased by 4.4% during the same period. This suggests an increasingly competitive and demanding economic environment, where new companies enter the market rapidly, but older or less efficient businesses are forced to exit.

The dynamics of bankruptcies varied across different sectors:

Sector Bankruptcy Dynamics (compared to previous quarter)
Accommodation and Food Services Increase of 20.7% (the highest figure)
Transport Increase of 18.7%
Financial Services Increase of 14.1%
Information and Communications Decrease of 4.8%
Construction Decrease of 3.1%

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