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last mo.

German Corporate Insolvencies Surge 19.2% in July

The spike reflects growing stress on small transport, construction and hospitality companies following the end of pandemic support alongside rising financing costs.

Fast 20 Prozent mehr Insolvenzen als im letzten Jahr (Symbolbild)
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Die Zahl der Firmenpleiten ist im Juli stark gestiegen. Im Vergleich zum Vorjahresmonat nahm die Zahl um 19,2 Prozent zu. Das war die höchste Zuwachsrate seit Oktober 2024.
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Overview

  • Destatis reported regular corporate insolvency applications rose 19.2% year-on-year in July, marking the largest monthly increase since October 2024.
  • Preliminary counts by the Leibniz Institute for Economic Research Halle recorded 1,588 company insolvencies in July, up 13% from a year earlier and highlighting the spike among smaller firms.
  • Failures have been concentrated in transport and logistics, construction and hospitality sectors, while large-scale corporate cases remain limited.
  • Analysts attribute the upswing to the end of pandemic support alongside rising borrowing costs, high energy prices and complex bureaucracy undermining firms’ liquidity.
  • Industry bodies and policymakers are debating relief measures including deregulation, energy-cost assistance and incentives for earlier restructuring to support stressed businesses.