Germany's corporate insolvency surge raises economic fears
The number of company bankruptcies in Germany is rising rapidly. According to DW, in November 2024, there were 12.6% more bankruptcy proceedings than in the previous year. Experts predict that the situation will worsen in 2025.
Germany is experiencing a dynamic increase in the number of insolvent companies. The Federal Statistical Office reported that in November 2024, the number of reported bankruptcy proceedings increased by 12.6% compared to the same month the previous year.
The fact that German companies are facing increasing difficulties is a result of the crisis that began during the pandemic, as well as the continuous rise in energy prices and the weakening economic climate. The price increases in food are affecting the gastronomy sector and its profitability.
German companies are hitting rock bottom. Failing at a dizzying pace
Since June 2023, the rate of increase in company bankruptcies has been in double digits. The only exception was June 2024, when there were slightly fewer bankruptcies recorded.
The transport, storage, construction, and gastronomy sectors are particularly affected. From January to September 2024, local courts reported 16,222 cases of company bankruptcies.
These data show an increase of 22.2% compared to the same period in 2023. This is the highest level since 2016, when 16,480 companies went bankrupt.
Experts predict that the number of bankruptcies will increase even more in 2025. The credit agency Creditreform forecasts that by the end of 2024, the number of company bankruptcies will reach 22,400.
This will be the highest figure since 2015. In 2025, the number of insolvent companies may approach the level of 2009, when over 32,000 cases were recorded.
The reasons include high energy costs, supply chain problems, and political uncertainty.
