A new study has found a massive 254% increase in business closures in the Algarve in the first quarter of 2021 compared to the same period last year.
“This increase reflects the uncertainty surrounding the Covid-19 pandemic,” says the study carried out by InfotrustGo, a business data and solutions company.
Between January and March alone, 652 businesses closed in the Algarve, which contrasts with the positive tendency that had started in 2018 and continued through to 2020, when ‘only’ 184 companies closed down.
Portimão stands out as the borough with the most closures (145), followed by Loulé (114), Albufeira (65) and Silves (55).
The tourism and restaurant sectors were the most affected, with 133 businesses closing their doors, followed by the construction (125), services (106) and retail (97) sectors.
On the other hand, there were no reports of any businesses closing in the manufacturing, electricity, gas, water and public administration sectors.
Interestingly, data shows that only 16 companies were reported “insolvent” in the first three months of 2021, as opposed to 27 in 2017.