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Germany’s Corporate Insolvencies Hit 20-Year High in 2025 as December Filings Jump

Researchers say the wave now reflects structural strains in the economy rather than temporary catch-up effects.

Overview

  • Insolvency filings reached 17,604 last year, the highest since 2005 and about 5% above the 2009 financial-crisis peak, according to the IWH.
  • December recorded 1,519 cases, up 17% from November, 14% from December 2024, and 75% above an average December in 2016–2019.
  • Roughly 170,000 jobs were affected in 2025, with significant impacts reported in manufacturing, hospitality, and construction including project developers.
  • Large-company failures rose sharply, with 471 firms posting annual revenue over €10 million entering insolvency, about 25% more than in 2024, led by metal goods makers, auto suppliers, and electrical engineering firms.
  • IWH early indicators point to very high insolvency levels persisting into the first quarter of 2026, and Falkensteg analysts do not foresee a near-term turnaround.