The wave of bankruptcies in the German economy shows no sign of stopping.
The number of bankruptcies also rose significantly in October. According to preliminary information, the Federal Statistical Office recorded 6.5 percent more registered insolvency proceedings for the month than in the same period last year.
However, the proceedings are only included in the statistics after the initial decision of the insolvency court. The time of filing for insolvency is often almost three months beforehand.
Increase of twelve percent in August
In August, for which final data is available, the numbers jumped even more significantly: the district courts reported 1,979 filed company insolvencies – a good twelve percent more than a year earlier. The creditors’ claims were around 5.4 billion euros, more than double than in the same month last year (2.3 billion euros).
Based on 10,000 companies, there were 5.7 company insolvencies in August, most of them in the transport and warehousing sectors, followed by construction and catering. At the same time, the number of consumer bankruptcies rose by a good eight percent to 6,132 cases.
The wave of bankruptcies will soon reach its peak?
In the ongoing economic crisis, many companies are having to give up. Credit agencies expect more company bankruptcies this year than in 2024. Even then, according to official figures, there were 21,812 cases, a high since 2015.
The list of problems for companies is long: expensive energy, a lot of bureaucracy, and consumer reluctance to consume. In addition, exceptional rules with which the state wanted to cushion a wave of bankruptcies in the corona pandemic have expired.
Credit insurer Allianz Trade expects 24,500 company bankruptcies next year, which would be a slight increase of one percent. The consequences of trade conflicts could soon test the resilience of companies, according to a recent study.
According to experts, the situation in Germany could improve in 2027, also thanks to the federal government’s economic stimulus measures. Allianz Trade then expects a decline in bankruptcies of around four percent to 23,500 cases.