Number of company bankruptcies in Germany climbs to a ten-year high in June

In the first half of the year, the local courts reported around 12,000 corporate insolvencies, 12.2 percent more than in the first half of 2024.

"Overall, we expect over 22,000 corporate insolvencies this year, significantly more than in 2024," explained DIHK chief analyst Volker Treier. "The crisis continues and is costing us jobs, value creation, and entrepreneurial potential every day."

Treier explained that the liquidity of many companies has been impacted after more than two years of continuous recession. As a result, corporate insolvencies have increased. According to preliminary figures from the Federal Statistical Office, almost twelve percent more company bankruptcies were filed in August than in the same month last year.

The DIHK chief analyst explained that the economic crisis is compounded by "considerable uncertainties in transatlantic trade." More than 1.2 million jobs in Germany depend directly on exports to the US. Key industrial sectors such as mechanical engineering, the automotive industry, chemicals, and pharmaceuticals are particularly affected.

In light of the high number of corporate bankruptcies, Treier called on politicians to "finally tackle the urgently needed reforms, for example, in social security systems." Otherwise, costs would continue to rise, especially for labor-intensive companies. "This is sometimes a threat to their very existence."