Corporate bankruptcies in Germany hit highest level since financial crisis of 2009
Date
1/12/2025 3:03:27 AM
(MENAFN) Corporate bankruptcies in Germany have reached their highest level since the financial crisis of 2009, according to new data released by The Halle Institute for Economic Research (IWH) on Thursday. In the fourth quarter of 2024, a total of 4,215 companies filed for bankruptcy, leading to the loss of 38,000 jobs. This marks a 36 percent increase in bankruptcies compared to the same period in 2023.
The trend of rising bankruptcies continued into December, with filings increasing by 24 percent compared to December 2023. A total of 1,340 companies went bankrupt in that month alone. This figure was 54 percent higher than the average for December in the pre-pandemic period, from 2016 to 2019.
Steffen Müller, head of the IWH Insolvency Research Department, explained that the surge in bankruptcies is largely due to current economic challenges, including rising energy and labor costs. He pointed out that years of extremely low interest rates had previously helped prevent bankruptcies, while government subsidies such as short-time work allowance had also shielded many businesses during the pandemic. However, with interest rates now rising and subsidies removed, bankruptcies have been on the rise since 2022.
The German economy continues to struggle, particularly within the manufacturing sector, which remains weak. The persistent economic fragility highlights the broader challenges facing businesses in the country.
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