Germany company insolvencies reach 13-year high

Company insolvencies in Germany reached their highest monthly level in 13 years in July. According to data from the Federal Statistical Office (Destatis), 2,373 insolvency filings were recorded in July, an 8% increase compared to the same month last year.

For the first seven months of the year, a total of 15,185 companies filed for insolvency, representing a 6.9% increase over the same period in the previous year. While the number of filings has risen, the total value of claims in these cases decreased to approximately 21.9 billion euros, down from 31.8 billion euros in the same period last year. This discrepancy is attributed to a shift toward smaller-scale businesses filing for insolvency, whereas the previous year saw more large-scale companies.

Economic experts note that high energy and labor costs, along with excessive bureaucracy, continue to pressure businesses and hinder investment. The transport and storage sector has been particularly hard hit, followed by the accommodation and construction industries. Data from the Halle Institute for Economic Research also indicates that September insolvencies rose by 13% compared to the previous year, remaining 85% above the pre-pandemic average for that month.