Bad news from the business environment: new company formation is cooling while the number of dissolutions rises. Data released this Friday by the National Institute of Statistics (INE) shows around 99,000 new companies started in 2022, a touch more dynamic than 2019—the reference year due to the pandemic—but still a 2% decline from the previous year. In the same period, an additional 26,200 businesses in Spain disappeared, marking a 10% rise from 2021 and a 12% lift versus pre-pandemic levels. The latest quarterly snapshot suggests the trend may be turning again. [INE, 2022]
Between October and December, 7,800 companies were dissolved across the country, accounting for 30% of annual closures and signaling a near 70% jump from the preceding quarter after two periods of recovery. If the curve pointed upward in March, dipping again in December, the mid-year improvement gave way to a renewed downturn by year-end. Early 2023 data continue to show the same pattern—more closures and a fragile rebound, but overall results remain aligned with the prior year’s trajectory. [INE, 2022]
Although the year began with a slower liquidation pace, the last three months of 2022 saw 12% more shutdowns than the same period in 2021. The overall decline also coincides with a temporary easing of the bankruptcy moratorium in the summer—a government measure meant to prevent a wave of bankruptcies tied to pandemic shutdowns—yet the macroeconomic picture appears to be turning more challenging. Economic growth in the same quarter barely reached 0.2%, consistent with analyst expectations and projections from major international organizations that forecast a flatter GDP gain in 2023 compared with 2022. Employment figures also showed weakness toward year-end. [INE, 2022]
Commerce, real estate and construction
Industry analysis identifies trade as the sector with the most closures over the year, representing 19% of the total, while it also saw a similar share of openings. This indicates a high churn rate in consumer-facing sectors. In contrast, the construction and property sector shows a different dynamic: it accounts for 16% of dissolved companies but only 12.7% of active firms. The industrial land segment concentrates 11% of closures but just 7% of openings. The sector dominated by hospitality, including hotels, cafes, and restaurants, closed about one in ten businesses that started during the year. Tourism-related activity, real estate, finance or insurance firms, construction-related enterprises, and hospitality businesses were among the most affected groups.
In summary, the most active openings in Spain this year occurred in retail, real estate, financial services, construction, and hospitality. [INE, 2022]
opening of companies
On the brighter side, there is a beacon of positive news for openings. While the annual balance remained negative, the last quarter’s performance was encouraging. Between October and December, 24,100 new companies were established in Spain, the strongest quarterly figure in recent years and 21% higher than the summer period, another typical seasonal pattern but notably stronger than in previous years. In fact, openings during that quarter reached nearly 18% of the pre-pandemic level.
Nevertheless, this small respite does not erase the broader trend. Catalonia, in particular, showed signs of stagnation in the first half of the year, with openings slowing down in the second half. [INE, 2022]