Overview

• Germany recorded approximately 121,300 insolvency cases in 2024, marking a 10.6% increase from the previous year and the highest level since 2015.
• Experts note that monthly insolvency rates have reached 20-year highs, comparable to those seen during the 2009 financial crisis.
• Economic challenges such as rising interest rates and residual effects from the COVID-19 pandemic and years of low interest rates are key contributors to the surge.
• The current wave of insolvencies is impacting larger businesses more significantly, leading to greater economic losses than in previous downturns.
• Projections indicate that insolvency rates may remain elevated in 2025, even if the economy begins to recover, due to a backlog of delayed cases.