Rising Business Insolvencies in Spain Amidst Economic Growth and Complex National Identity

Spain continues to face a paradoxical economic challenge in 2025: rising business insolvencies despite overall economic growth. Inflation increased significantly, rising from 1.5% in May to 2.9% in September, which has eroded purchasing power and contributed to the distress in the business sector. According to an analysis by Coface, business insolvencies in 2024 have surged by 12.6% compared to the previous year, totaling 5,589 cases. This marks a 29.4% increase from 2019 levels, even though 2024 figures are down from a peak of over 6,000 insolvencies recorded in 2022. Experts highlight that the gradual withdrawal of post-pandemic financial support, such as direct aid and interest rate reductions, has exposed companies, particularly in vulnerable sectors like agri-food, retail, IT, and logistics, to rising operational costs and changing consumer behavior, intensifying the risk of insolvencies.

Against this economic backdrop is a complex socio-political landscape related to Spanish national identity. A recent reflection on Spain’s historical and contemporary identity points to a nuanced sentiment among citizens — while regional and ideological divides persist, over 75% of Spaniards express pride in their nationality. This contrasts with the political fragmentation seen in Spain, where parties often prioritize their own interests, according to an analysis referencing a Sigma 2 survey. Such dynamics underscore the intricate interplay between economic pressures and broader societal narratives in Spain today.

As inflation pressures mount and financial support fades, companies are urged to enhance financial prudence and build resilience. Meanwhile, public discourse calls for political leaders to place national interests above partisan concerns, especially amid external criticisms of Spain and Europe. This complex environment suggests that Spain’s economic and social future hinges on balancing immediate economic resilience with a stronger, shared sense of national unity.