German Corporate Bankruptcies Surge by 14.1% at Start of 2025

Economic challenges, including high energy costs and bureaucracy, drive a sharp rise in insolvencies across key industries.

The number of corporate insolvencies in Germany increased by 14.1% in January 2025 compared to the same month last year, continuing a trend of double-digit rises since mid-2023.
November 2024 saw 1,787 company bankruptcies, marking an 18.1% year-over-year increase and the highest November figure in a decade.
Key sectors affected include transportation and logistics, construction, and hospitality, with nearly a quarter of companies in automotive manufacturing and healthcare reporting financial difficulties.
Creditors' claims from November insolvencies totaled €2.8 billion, nearly doubling the €1.5 billion reported in November 2023.
Experts predict the insolvency wave will worsen in 2025, with calls for reduced bureaucracy, lower energy costs, and tax relief to stabilize businesses.