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Ifo Survey Finds 8.1% of German Firms Fear for Survival in November

The institute expects insolvencies to remain high.

Overview

  • The share of companies reporting existential concern rose from 7.3% in October 2024 to 8.1% now.
  • Retail is hardest hit, with 15% of businesses reporting deep financial distress.
  • Services and wholesale each report 7.6%, while manufacturing has eased slightly to 8.1% from 8.6%.
  • Construction shows some relief, with the share seeing existential risk down to 6.3% from 7.9% a year earlier.
  • Firms cite a lack of new orders and weak demand causing liquidity squeezes, compounded by higher operating and personnel costs, international competition and bureaucracy.