Corporate Insolvencies in Germany Surge by 22.9% in October

Economic pressures, including high costs and weak demand, drive insolvency filings to their highest levels in nearly a decade.

The number of corporate insolvencies in Germany increased by 22.9% in October 2024 compared to the same month last year, according to preliminary data from the Federal Statistical Office.
Sectors most affected include transportation, warehousing, hospitality, and construction, with smaller and medium-sized businesses particularly vulnerable.
Experts attribute the rise to a combination of weak economic growth, high energy and labor costs, and the impact of increased interest rates on refinancing.
The total number of insolvencies for 2024 is projected to exceed 20,000, marking a significant increase from 17,814 cases in 2023.
Analysts warn that many businesses that survived during the pandemic due to government support are now struggling to sustain operations in the current economic climate.