German Corporate Insolvencies Reach Record Levels in 2024

The surge in insolvencies is attributed to economic downturns and post-pandemic financial adjustments, with significant impacts on key sectors.

In September 2024, Germany saw a 13.7% increase in insolvency filings compared to the previous year, continuing a trend of rising cases since June 2023.
The third quarter of 2024 recorded 3,991 insolvencies, marking the highest quarterly figure since 2010, according to the Leibniz Institute for Economic Research.
Economic challenges and the unwinding of pandemic-era support measures have contributed to the surge in insolvencies.
The most affected sectors include transportation, construction, and hospitality, with significant increases also noted in the real estate and business services industries.
Despite the rise in insolvencies, experts suggest that Germany is not facing a severe recession, as the overall economic foundation remains robust.