In Germany, over 5000 companies file for bankruptcies in 3 months

Admin I Saturday, June 15, 2024

 

BERLIN – the first three months of the year 5,209 companies filed for bankruptcy in Germany, the Federal Statistical Office on Friday, continuing an upward trend.

This year’s first quarter figure was 26.5% higher than in the same quarter last year. It was also 11.2% higher than in same quarter in 2020, before the coronavirus forced closures across the country.

In May 2024, 25.9% more regular insolvencies were filed than a year earlier. Since June 2023, double-digit year-on-year growth rates have been recorded, according to the government statisticians.

The cases are only included in the statistics after the first decision by the insolvency court. In many cases, the actual date of the insolvency application is almost three months earlier.

Experts expect the number of corporate insolvencies in Germany to rise to around 20,000 cases this year.

Weakened by the pandemic years, high energy prices and higher interest rates, more and more companies in Germany are getting into financial trouble.

In addition, state measures to avert a wave of bankruptcies during the pandemic have expired.