THE state of the economy in the wake of the Ukraine war and the post-pandemic period contributed to the highest number of Spanish companies folding in 2022 for 27 years.

The National Institute of Statistics(INE) reported on Friday that 26,207 firms closed their doors last year- 10.1% more than in 2021, and the highest figure since 1995.

Most of the dissolutions were voluntary with 2,997 businesses disappearing via mergers and 2,494 for other reasons.

Trade and construction companies suffered the most, according to the INE.

The highest closures were in Madrid (8,842), Andalucia (3,988) and Valencia (2,177), while at the other end of the scale, Navarra saw just 91 dissolutions.

On a positive note, the creation of new companies last year was led by trade, which accounted for 19.5% of the total, followed by real estate, financial and insurance, with 16.9%.

As with closures, Madrid led in the creative stakes with 22,834 new companies registered, followed by Catalunya on 18,977 and Andalucia with 17,188.

The INE’s December figures showed 8,258 companies were created, 1.6% less than in the same month of the previous year.

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