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Germany registers increase in corporate bankruptcies
(MENAFN) Germany has experienced a significant increase in corporate bankruptcies over the past year, according to the federal Statistical Office (Destatis). Preliminary data indicates a 22.9% rise in insolvencies for October 2024 compared to the same month in 2023. This surge follows a trend of double-digit increases in bankruptcy filings since June 2023, with the exception of June 2024, which saw a more modest 6.3% rise. The transport and warehousing sectors have seen the highest number of insolvencies, followed by the hospitality industry.
Experts attribute the spike to a combination of long-term economic stagnation and sharply rising costs. Analysts predict that about 20,000 companies will go bankrupt in 2024, up from 17,814 in 2023. Despite this, Germany narrowly avoided a technical recession in the third quarter of 2024, with GDP growing by 0.2%, though a recession had been expected. The country’s economic challenges have been compounded by high energy costs, stemming from reduced gas supplies from Russia, and rising competition from abroad. The outlook for growth remains weak, with forecasts suggesting near-stagnation.
Experts attribute the spike to a combination of long-term economic stagnation and sharply rising costs. Analysts predict that about 20,000 companies will go bankrupt in 2024, up from 17,814 in 2023. Despite this, Germany narrowly avoided a technical recession in the third quarter of 2024, with GDP growing by 0.2%, though a recession had been expected. The country’s economic challenges have been compounded by high energy costs, stemming from reduced gas supplies from Russia, and rising competition from abroad. The outlook for growth remains weak, with forecasts suggesting near-stagnation.
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