Germany faces surge in corporate insolvencies

Germany is experiencing a significant rise in corporate insolvencies, with the first half of 2026 marking the worst period for business failures in 13 years. According to data from the Federal Statistical Office, 12,812 insolvency applications were filed between January and June 2026, a 6.7 percent increase compared to the previous year.

In June 2026 alone, German courts registered 2,266 insolvency applications, averaging one every 19 minutes. The sectors most heavily impacted include transport and storage, hospitality, and construction.

Credit insurer Allianz Trade has issued a warning regarding large-scale insolvencies, defined as companies with annual revenues exceeding 50 million euros. In the first half of 2026, 33 such large companies filed for insolvency, a 10 percent increase from the same period last year. Milo Bogaerts, CEO of Allianz Trade for Germany, Austria, and Switzerland, noted that this trend serves as a warning signal for the German economy, as the failure of large market participants can create domino effects across complex supply chains, putting pressure on suppliers and service providers.