According to a report in the Rzeczpospolita news outlet on Monday citing data from business intelligence agency Dun and Bradstreet, Poland is seeing the number of bankruptcy declarations in the nation surge at a record rate, as the threat of a recession impacts the business environment in the country.

Over the first half of the year, 110,500 companies suspended their active business activities, according to the outlet. It is projected that by December, over 220,000 businesses will have declared insolvency, which would represent a 30% rise over 2022.

The worst affected industry is construction, with 27,000 companies having declared bankruptcy in 2023 so far. The report noted that the sector has been battered by high unemployment costs, as well as a surge in the prices of materials, fuel, and energy, all of which have been exacerbated by skyrocketing debt-servicing costs.

Declines in consumer demand have led to more than 18,200 companies in the trade industry, including both the retail and wholesale sectors, declaring bankruptcy.

Renata Juszkiewicz, the president of the Polish Trade and Distribution Organization, said, “We are seriously experiencing the increase in operating costs, and at the same time we are fighting for at least minimizing the scale of price increases that both retail chains and consumers are now struggling with.”

Analysts say the rise in bankruptcy filings is attributable to the combination of an economic slowdown, and the threat of a broader recession.