In June, 2.4% more regular insolvencies were filed at Germany's district courts than a year earlier, the Federal Statistical Office, or Destatis, reported on Friday based on preliminary data, said dpa.
The figure indicates that the number of company insolvencies in Germany continues to rise despite the first year-on-year decline in insolvency numbers in May since March 2023.
It remains uncertain whether all cases will actually be processed by the insolvency courts to the point where they enter the official statistics. According to Destatis, the actual date of the insolvency application is often almost three months earlier.
Many companies continue to slide into insolvency. Recently, the credit agency Creditreform estimated a 9.4% increase in the first half of the year compared to the same period last year, reaching 11,900 company insolvencies. This would be the highest level since 2015. At that time, Creditreform recorded 11,530 company insolvencies from January to the end of June.
The reasons for the insolvencies include weak consumer demand, rising costs such as energy and bureaucratic burdens.
The increase was partly expected after the end of state support approved during the Covid-19 pandemic.
For April, Destatis reported that 2,125 company insolvencies were finally filed. This was 11.5% more than a year earlier. However, since these were on average significantly smaller cases, the creditors' claim amount fell from €11.4 billion ($13.33 billion) to €2.5 billion.
The high April figure clearly signals that German businesses continue to face significant challenges, according to Volker Treier, the chief economist of the Chamber of Industry and Commerce. "Anyone who wants to secure competitiveness must not continue to postpone relief," he said.
Therefore the federal government's immediate investment programme should be implemented swiftly, Treier said.
- Insolvencies
- German companies
Source: www.dailyfinland.fi
