Business failures in overseas territories increased by 34.2% in 2023 and exceeded pre-Covid figures, according to data published Friday by the institutes representing the Bank of France in these territories.
Cumulatively for the year 2023, 2,338 overseas companies have been placed in receivership or liquidation, which constitutes a high point, beyond the pre-Covid crisis level, detail in a press release the Institute of Issues of the Departments d’outre-mer (IEDOM) and the Overseas Emission Institute (IEOM), which manages the Pacific zone.
During the pandemic, public aid – state-guaranteed loans (PGE), partial unemployment or deferral of tax deadlines – had kept many businesses afloat, causing the number of insolvencies to drop.
Over the period 2010-2019, the average trend level of business failures was 2,004, according to the two institutes.
French Polynesia (-16.1%) was the only territory spared in 2023 by the phenomenon, which particularly affected Reunion Island (874 failures, +58.3%) and Martinique (448, +51.9% ).
The two institutes have notably identified in 2023 a jump in insolvencies of 65% in the business advice and services sector and of more than 66% in the transport and warehousing sector.
In terms of number of failures, construction, which represents around 11% of overseas companies, ranks first with 608 failing companies in 2023.