Spain sees a solid start to 2023 for new companies in the first half
Even as the year opened with mixed signals, the first half of 2023 brought encouraging news for Spain’s business landscape. In the January to June window, roughly 61,000 new enterprises were launched, marking a 10.7% rise from the same period a year earlier. This volume stands out as a level not seen for 15 years, signaling renewed confidence among entrepreneurs and a more active market in the early months of the year. Yet, there is a cautious note on business suspensions, which rose by about 0.5%, far from the 10% spike recorded at the end of 2022.
National Institute of Statistics data released on Friday show that June alone accounted for 10,206 new openings, the strongest June since 2007 when openings reached around 12,000. The June figure also shows a 14.5% year-on-year increase, reinforcing a six-month streak of growth. This sustained expansion paints a picture of a job market and business fabric in Spain that have moved past the Covid disruptions and entered a phase of stable, ongoing activity.
Overall, the six-month total reached 60,935 new companies, near 62,300 in the same period back in 2008. Analysts point to a resilient economy as a key factor, with openings concentrated in sectors such as commerce, real estate, finance and insurance, and construction. The Madrid region led the way in establishing new firms during the first half, followed by Catalonia and Andalusia. Collectively, these three communities represented a little more than half of all new company formations in the period.
Business liquidations and sectoral trends
Alongside growth in new company registrations, Spain’s economy faced a steady run of business closures through mid-year. The data show a stable liquidation rate, with the six-month total at 13,870 closures, up 0.5% from the same period last year. Despite the modest increase, the overall volume surpassed the 13,700 peak recorded in 2022, indicating a high level of market churn tied to the ongoing adjustment after the brick-and-mortar expansion phase. Madrid, Andalusia, and the Valencian Community emerged as leaders in closures, while Catalonia ranked second in openings but fourth in closings. In June alone, 984 companies shut down, which is approximately 13% lower than in the first half of the previous year.
As with openings, the closures followed recognizable patterns by sector. The most active sectors for dissolutions were trade, real estate and construction, with finance and insurance also displaying notable activity in the closing space. These patterns reflect how firms across the economy are recalibrating their positions in an evolving market landscape and adjusting to shifts in demand, financing conditions, and regulatory environments.
In summary, the first half of the year shows a dual narrative: ongoing vitality in creating new ventures and a disciplined pace of business closures that underscores a balanced, albeit challenging, economic environment. The geographic distribution emphasizes Madrid’s leading role alongside strong contributions from Catalonia and Andalusia, revealing a regional dimension to Spain’s broader business climate. The overall picture points to a refreshed entrepreneurship engine tempered by prudent risk management in a recovering economy.