The number of corporate bankruptcies in Germany increased by almost 30 per cent in the first six months of 2024.
According to statistics from the Creditreform Economic Research Association, around 11,000 company bankruptcies were registered during this period, the highest number in almost 10 years. Creditreform’s head of economic research Patrik-Ludwig Hantzsch said:
In the first half of 2024, companies continue to struggle with the effects of the 2023 recession, ongoing crises and weak economic development. All of this is undermining the fortunes of many companies.
Creditreform analysts predict a further increase in the insolvency of German businesses during this year. According to experts, the rise in bankruptcies reflects the effects of previous crises.
The study also notes that a significantly higher number of medium and large companies have filed for bankruptcy this half-year. Among the most prominent cases are Galeria Karstadt and FTI-Touristik.
Creditreform estimates that bankruptcies filed between January and June 2024 affected around 133,000 employees, up from 125,000 in the same period last year.
Germany’s economy is currently experiencing a downturn caused, among other things, by high energy prices due to the interruption of gas supplies from Russia. Last year, the country’s GDP shrank by 0.3 per cent. The German government expects the economy to grow by 0.2 per cent this year.
