Spain Sees Overall Decline in Business Insolvencies Amid Regional Disparities

Spain experienced a 6% decrease in business insolvencies in 2025, with a total of 5,577 cases, signaling a cautiously optimistic economic outlook. However, this overall national improvement masks significant regional disparities. Regions like the Basque Country, Andalusia, and Valencia have seen notable reductions in insolvencies, while Catalonia diverges from this trend by showing less favorable figures. Conversely, Castilla-La Mancha recorded a 9% increase in insolvencies, accounting for 29% of the national total, a situation attributed partially to nationalist pressures.

Micro and small enterprises, especially in the paper, transport, and retail sectors, remain vulnerable due to persistent cost pressures and weak consumer demand. Despite the decline, insolvencies are still 40% above pre-pandemic levels, underscoring ongoing financial challenges.

Looking ahead to 2026, Coface forecasts a global rise of 2.8% in insolvencies but anticipates a 3% decrease in Spain due to macroeconomic stabilization and improved credit conditions. Experts caution, however, that Spain's recovery remains fragile, with high debt levels and sensitivity to credit costs posing risks. Jonathan Steenberg from Coface emphasized that monetary policy decisions will be more influential than economic growth in determining insolvency trends next year.

While Spain's economy grows, disparities remain not only in insolvency rates but also in regional wealth distribution and productivity, as seen in economically growing regions like Murcia where income and well-being fail to match GDP advances.