According to a current survey by the Ifo Institute, one in twelve companies in Germany fears acutely for their own existence.
The proportion of companies that see themselves in a critical situation has increased to 8.1 percent, as the Munich Economic Research Institute announced. Just over a year ago in October 2024 it was 7.3 percent. “The number of corporate insolvencies is likely to remain at a high level in the coming months,” said Ifo survey leader Klaus Wohlrabe.
Companies across all sectors see a lack of orders as the greatest danger, which leads to financial bottlenecks. In addition, there are increased operating and personnel costs and bureaucracy.
According to the Ifo Institute, retail has been particularly hard hit, with 15 percent admitting to deep economic problems. The situation in industry has improved slightly since October 2024, with a decline from 8.6 to 8.1 percent.
The Ifo Institute surveys several thousand companies every month for its economic surveys.
