Overview

• Germany recorded 196,100 company closures in 2024, a 16% increase from 2023 and the highest number since 2011.
• Key factors include retiring owners without successors, high energy costs, and rising foreign competition, particularly affecting industrial firms.
• Closures in energy-intensive sectors rose by 26%, with IT, environmental tech, and diagnostics sectors also seeing a 25% spike.
• Skilled-labor shortages have exacerbated challenges for businesses in future-oriented industries, limiting their ability to operate effectively.
• While SME closures rise, official data shows a net increase in the formation of larger, significant companies.