Credit insurer Allianz Trade has sounded the alarm in a report published in August 2026: France's overseas territories recorded 709 business failures in the second quarter of 2026. A level that illustrates a deep economic crisis, amplified by declining purchasing power and global geopolitical tensions.
A Quarter Under Severe Strain
In just three months of Q2 2026, 709 companies failed across France's overseas departments and regions (DROM). In metropolitan France, the figure reached 18,000 failures over the same period, with a national annual projection of 70,000 — a record since the 2008 financial crisis.
The situation is particularly severe in Martinique and Guadeloupe, where failures jumped more than 40% year-on-year. Réunion, which accounts for nearly half of all overseas failures on its own, maintains a worrying trajectory, while French Guiana is the only territory temporarily showing a decline — linked to a comparison effect with a spike the previous year.
Retail and Services on the Front Line
Three sectors account for the bulk of the difficulties. Retail and wholesale trade is suffering failure rates «ten times higher than the national average», according to the Allianz Trade report, penalised by declining household purchasing power and persistent inflation on imported products. The services sector is also recording significant increases, as is the food processing industry, facing growing pressure on production margins.
The causes identified by the insurer are structural: «sluggish economic growth, consumption hampered by cost-of-living pressures, and international geopolitical tensions affecting supply chains». For islands heavily dependent on imports, the impact is amplified.
Why It Matters
These figures are not cyclical: they signal a fragile business fabric in territories where local SMEs form the backbone of employment. In Mayotte, still in post-cyclone Chido reconstruction, the context is particularly concerning. For decision-makers — central government, local authorities, chambers of commerce — the alarm signal requires targeted support measures, both for business cash flow and household purchasing power. Without rapid intervention, the wave of failures risks permanently slowing the economic recovery of these territories.
Source: Allianz Trade (Q2 2026 report, August 2026), Le Journal de Mayotte.