German insolvencies soar as economic pressures mount
In Germany, the number of company bankruptcies is increasing rapidly. According to DW, in November 2024, there was a 12.6% increase in bankruptcy proceedings compared to the previous year. Experts predict that the situation will deteriorate in 2025.
There is a dynamic rise in the number of insolvent enterprises in Germany. The Federal Statistical Office reported that in November 2024, bankruptcy filings increased by 12.6% compared to the same month the previous year.
The difficulties faced by German companies stem from the crisis that began during the pandemic, compounded by the continuous rise in energy prices and a weakening economy. The food service industry, already unprofitable, is particularly affected by rising food prices.
German companies are hitting rock bottom. They are collapsing 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 slightly fewer bankruptcies were recorded.
The sectors most affected are transportation, warehousing, construction, and food service. From January to September 2024, district courts reported 16,222 cases of company bankruptcies.
This represents a 22.2% increase compared to the same period in 2023, the highest level since 2016, when 16,480 companies went bankrupt.
Experts predict that the number of bankruptcies will climb even further 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 number since 2015. In 2025, the number of insolvent companies may approach the level recorded in 2009, when more than 32,000 cases were noted.
The contributing factors include high energy costs, supply chain issues, and political uncertainty.
