Germany's struggling economy is making it harder to keep businesses afloat, with insolvencies rising again in March, reported dpa.
Official figures published on Friday showed that the number of insolvency applications in Europe's largest economy rose again last month, by 5.7% compared to March last year.
The applications are only included in the figures from the Federal Statistical Office after the first decision by an insolvency court.
The actual date when the application was made is often almost three months earlier.
Correspondingly, the local courts registered 1,830 corporate insolvencies in January, with creditors' claims totalling €5.3 billion. This was a 12.8% increase compared to a year earlier.
Companies from the warehousing and transport sector figured highly again in the insolvency statistics.
Over the whole of 2024, the statistical office said there were 21,812 insolvency applications registered by the courts, 22.4% more than a year earlier.
The Association of German Chambers of Industry and Commerce (DIHK) said it expects the wave of insolvencies to continue to swell.
DIHK chief analyst Volker Treier said it was a further warning sign for the incoming coalition government led by conservative Friedrich Merz, and urged it to provide significant relief for the economy.
Germany is teetering on the edge of a third consecutive year of recession, after a 0.2% drop in GDP in 2024.
Economic researchers on Thursday cut their GDP forecast for 2025 from 0.8% to 0.1%, and warned of further negative effects of US President Donald Trump's tariff policy.
- Insolvencies
- Germany
Source: www.dailyfinland.fi
