Historic increase in bankruptcies in Germany – companies under pressure
Record increase in company bankruptcies in Germany – the worst situation in two decades
The German economy is struggling with a sharp increase in bankruptcies. Experts predict that the number of bankruptcies could reach 2023 in 20. This is the highest level in 20 years, and the difficult economic situation is significantly affecting the condition of companies in the country. According to preliminary data from the Federal Statistical Office, the number of registered bankruptcy applications in October increased by almost 23% compared to the previous year, reports dw.com.
The upward trend has been going on for a long time
Although the data must be confirmed by the courts, there is already a clear upward trend. With the exception of one month since June of last year, the number of bankruptcy filings has been steadily increasing at double-digit rates.
– The current situation is the result of long-term economic problems and rapidly rising costs, comments Steffen Müller, a researcher at the Leibniz Institute for Economic Research IWH in Halle, quoted by dw.com.
Record number of bankruptcies in October
An analysis by the Leibniz Institute showed that insolvencies reached 1530 in October, a number that was last seen in 2004. Müller notes that many companies that survived thanks to low interest rates and pandemic support are now struggling to cope with rising costs, leading to insolvency.
Forecasts for the future
Experts estimate that after the pandemic regulations expire, the number of bankruptcies could exceed 2023 in 20. For comparison, the Federal Statistical Office registered 2023 bankruptcies in the whole of 17, and from January to August of this year, 814 cases were already reported - almost 14% more than in the same period of the previous year.
The growing wave of bankruptcies highlights the serious challenges that German companies must face in the face of the economic crisis and dynamically changing market conditions.