IEOM and IEDOM Report Slight Slowdown in Overseas Business Failure Growth

Overview of Business Failure Trends in Overseas France

The Institut d'Émission d'Outre-mer (IEOM) and the Institut d'Émission des Départements d'Outre-mer (IEDOM) jointly reported on December 1, 2025, a slight slowdown in the growth rate of business failures across French overseas territories. This comprehensive report covers the period from September 2024 to September 2025, revealing a complex economic picture for these regions, which include Wallis and Futuna.

During the specified 12-month period, a total of 2,687 business recovery and judicial liquidation procedures were recorded across Overseas France. While the number of failures continues to increase, the pace of this growth has decelerated to +8.3% over one year, following a +9% increase in the second quarter of 2025. This rate remains more sustained compared to mainland France, which saw a +6% increase after an +8.6% rise.

Sectoral Disparities in Business Failures

The report highlights significant variations in business failure trends across different economic sectors. The increase in failures was primarily driven by the business consulting and services sector, which saw a substantial rise of +20.9% over one year. Similarly, the sector encompassing education, health, social action, and household services experienced a notable increase of +17.8%.

Conversely, the construction sector demonstrated a positive shift, recording a decline in business failures for the first time in four years, with a decrease of -2.3%. This sector typically accounts for approximately a quarter of all global business failures in the overseas territories.

Geographical Variations Across Overseas Territories

The economic landscape presented by the report shows diverse trends across the various French overseas territories. Significant increases in business failures were observed in several regions:

• Guadeloupe experienced a substantial rise of +31.4% over one year, reaching 444 failures.
• Guyana saw a sharp increase of +133.8%, with 152 judgments.
• New Caledonia recorded an increase of +7.9% after three quarters of decline, with 397 judgments.

In contrast, some territories showed a slowing growth rate or even a decrease in failures:

• The growth of failures in Martinique slowed to +4.5%.
• La Réunion saw a decrease of -2.7%, marking the first decline in three years, with 1,046 procedures.
• Mayotte also experienced a significant reduction in failures, down -32.6%.
• French Polynesia recorded an increase of +4.7%, with 156 procedures.

While specific figures for Wallis and Futuna were not detailed in this particular report on business failures, the territory is part of the French overseas collectivities for which the IEOM serves as the central bank and conducts economic monitoring. The IEOM issues the CFP franc, the currency used in Wallis and Futuna, and maintains a local office in Mata-Utu, underscoring its role in the territory's economic oversight.

Conclusion

The latest report from the IEOM and IEDOM indicates a nuanced economic situation across French overseas territories. While the overall growth rate of business failures has slightly slowed, the underlying trends reveal significant disparities by sector and geography. This mixed picture suggests ongoing challenges and varying resilience levels within the diverse economies of Overseas France.