German bankruptcies surge as energy costs and economy worsen
In Germany, the number of company bankruptcies is increasing rapidly. According to DW, in November 2024, there was a 12.6% increase in bankruptcy proceedings compared to the previous year. Experts predict that the situation will worsen in 2025.
The rise in the number of insolvent enterprises in Germany is dynamic. The Federal Statistical Office reported that, in November 2024, the number of filed bankruptcy proceedings rose by 12.6% compared to the same month the previous year.
The difficulties faced by German companies result from the crisis that began during the pandemic, coupled with the continuous rise in energy prices and a weakening economy. The food service industry, in particular, is struggling with unprofitability due to rising food prices.
German companies are hitting rock bottom. They are collapsing at a dizzying pace
Since June 2023, the rate of increase in company bankruptcies has consistently been in double digits. The only exception was June 2024, when slightly fewer bankruptcies were recorded.
Particularly affected are the transport, warehousing, construction, and food service industries. From January to September 2024, district courts reported 16,222 cases of company bankruptcies.
This data shows a 22.2% increase compared to the same period in 2023. It represents the highest level since 2016, when 16,480 companies went bankrupt.
Experts predict that the number of bankruptcies will increase even further in 2025. The credit agency Creditreform forecasts that by the end of 2024, the number of company bankruptcies will reach 22,400.
This will be the highest number since 2015. In 2025, the number of insolvent companies may approach the level of 2009, when more than 32,000 cases were recorded.
The reasons include high energy costs, supply chain issues, and political uncertainty.
