Germany reports around 11,000 companies declare bankruptcy in H1

(MENAFN) Germany's Federal Statistical Office reported today that 11,000 companies declared bankruptcy in the first half of 2024. This significant figure highlights the financial difficulties businesses in the country have faced this year. The office also noted that the number of companies filing for bankruptcy surged in August compared to the same period last year, signaling a troubling trend for the German economy.

Preliminary data from the Federal Statistical Office revealed a 10.7 percent year-on-year increase in bankruptcy cases handled by the courts. This marks the first time in 2024 that bankruptcy filings have seen a rise of less than 10 percent, up until June. The office emphasized that not all recorded bankruptcies may proceed to formal legal processes and be included in official statistics.

According to finalized data, a total of 10,702 companies filed for bankruptcy in the first half of the year, including those that filed in June. This represents a 24.9 percent increase compared to the same period in 2023. The sharp rise underscores the challenging economic conditions that many businesses are navigating, with some sectors being hit harder than others.

The total debt of companies entering bankruptcy proceedings in the first half of 2024 reached 32.4 billion euros, a substantial jump from the 13.9 billion euros in the same period last year. Companies in the transport and storage sectors accounted for the majority of these bankruptcy cases. Additionally, there was a notable rise in bankruptcies among temporary employment agencies and construction firms.

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