Germany sees highest spike in bankruptcies in 20 years

DPA

Thu, May 8, 2025, 10:54 AM 1 min read

The number of insolvencies of joint partnerships and corporations in Germany has reached its highest level in 20 years, data published on Thursday by the Halle Institute for Economic Research (IWH) showed.

It reported there were 1,626 insolvencies of business partnerships and corporations in April. This was 11% more than in the previous month and 21% more than a year ago.

The April figures even exceeded the figures from the time of the 2008/2009 financial crisis, it said. "The last time more insolvent partnerships and corporations were counted in Germany was in July 2005."

One reason for the recent higher-than-expected figures was an unusually high proportion of small insolvency proceedings, the institute said.

"If the proportion of smaller insolvency proceedings now returns to the long-term average, I expect insolvency figures to fall in the coming months," says Steffen Müller, head of insolvency research at the IWH.

"Nevertheless, we will see more company insolvencies in Germany than last year for the foreseeable future."

The institute collects early indicators that run two to three months ahead of insolvency events.

Insolvency announcements are analysed on a monthly basis and linked to the companies' balance sheet data.