Corporate bankruptcies in Germany reach highest level since 2009 financial crisis
Date
1/11/2025 3:29:57 AM
(MENAFN) Corporate bankruptcies in Germany have surged to their highest level since the 2009 financial crisis, according to data released Thursday by The Halle Institute for Economic Research (IWH).
In the fourth quarter of 2024, a total of 4,215 companies filed for bankruptcy, affecting approximately 38,000 jobs. This marks a 36 percent increase in bankruptcies compared to the same period in 2023.
In December alone, Germany saw a 24 percent rise in corporate bankruptcies compared to December 2023, reaching 1,340 filings. These figures were 54 percent higher than the December average from the pre-pandemic years of 2016-2019.
Steffen Müller, head of the IWH’s Insolvency Research Department, linked the high number of bankruptcies to ongoing economic challenges, including rising energy costs and wages. He noted, "Years of extremely low interest rates prevented bankruptcies, and bankruptcies did not occur during the pandemic due to subsidies such as short-time working allowance."
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