Business closures rise in sectors most affected by restrictions
Luxembourg has recorded a threefold increase in business closures in sectors most affected by the pandemic, such as gastronomy or commerce, while bankruptcies have returned to pre-pandemic levels.
Luxembourg courts ordered the liquidation or full closure of 183 companies in March 2021, compared to 53 in the same month the previous year and 60 two years ago, the country's national statistics body Statec said on Wednesday.
There has been a particular increase in liquidations in commerce and trade, gastronomy and tourism and in scientific and technical activities, Statec said in a press release.
However, bankruptcies in the Grand Duchy in March this year were back at pre-pandemic levels. The figures had initially dropped due to government support measures to help firms weather restrictions when a strict lockdown was imposed in mid-March last year.
Luxembourg courts pronounced 116 bankruptcies during March 2021, compared to 65 in the same month the previous year, and 139 in 2019.
Luxembourg's economy has not been hit as severely by the pandemic as other European countries, with the gross domestic product registering a decline of just 1.3% in 2020, according to the national statistics bureau Statec, compared to a 5% contraction in Germany and 8.3% in France.
This is also due to the strong performance of the country's financial sector during the pandemic, Finance Minister Pierre Gramegna said in parliament on Tuesday, during which he also presented the country's plan for spending funds obtained as part of the the EU's €750 billion recovery plan.