The courts declared 21,000 consumer insolvencies in 2023, a result never before recorded. During this time, 4.65 thousand companies declared insolvency – 70% more than the year before, according to data from the National Debt Register (KRD). The year 2023 saw record inflation, rising energy and fuel prices and high interest rates on loans, all of which made life extremely difficult for both the average consumer and the operation of many businesses.

One in three Poles surveyed by the National Debt Register declared that their savings had declined recently and they had to draw on them mainly to cover current expenses. Business debts increased by PLN 1.1 billion and consumer debts by PLN 2.4 billion by the end of November 2023. In addition, the average debt increased in the case of companies and it reached a cap of PLN 36.6 thousand, while the statistical consumer had PLN 20.3 thousand to pay back.

“There are many indications that the worst is over. Preliminary data for December show that we will see a slight decline in debt, both among consumers and businesses. This trend should deepen in the new year, but I warn against excessive optimism. Declines will not be so large enough for payment bottlenecks to cease being one of the main barriers to the development of Polish companies. The number of debtors will still be large, so caution is advised when selecting clients”, said the president of the National Debt Register of the Economic Information Bureau Adam Łęcki.

The better condition of the Polish economy will be influenced not only by the improving economic situation in Europe, but also by the new government’s unblocking of money from the National Reconstruction Plan.

The increase in consumption expected as a result will not only be a strong stimulus for the economy, but will also make payment discipline increase. “Our experience of more than 20 years shows that whenever Poles have more money in their pockets, they are more willing to repay their debts,” added the KRD president.

Adrian Andrzejewski