Recession in Spain

Businesses and individuals going bankrupt almost tripled in 2008.

The economic crisis in Spain has meant that the number of individuals and businesses going into administration almost tripled in 2008 reaching a record 2,902 out of which 38.66% corresponds to the construction and housing sector.

According to figures published today by Cadena Ser from the Spanish National Institute for Statistics (INE) the number of individuals that declared themselves insolvent went up by 289.56% to 374 and the number of companies and self employed who went into administration went up by 187.3% to 2,528 last year.

The economic crisis last year meant that those filing for bankruptcy went up above all in the last quarter of 2008 when a historic record of 1,082 insolvencies were registered – 265% more than in the same period for 2007.

Out of those filing for bankruptcy 2,725 were voluntary applications which is 218.7% more than in 2007 – 177 were declared bankrupt by the authorities which is 46.

3% more than in 2007.

The construction and housing sector together with industry and the service sector accounts for 67.2% of the total number of those going into administration in 2008.