Corporate bankruptcies in Germany were at their highest level in a decade in the first half of 2025, as firms in Europe's largest economy struggle with weak demand, rising costs and uncertainty, a study by economic tracking agency Creditreform has showed.
Some 11,900 corporate insolvencies were registered in the first six months of this year, 9.4 percent more than in the same period last year, the agency said on Thursday.
"Germany remains in a deep economic and structural crisis," said Credit reform chief economist Patrik-Ludwig Hantzsch.
Hantzsch commented further that companies are increasingly having problems as their financial reserves dwindle, and loans are sometimes no longer being extended.
High risk
He warned that the risk of insolvencies remains high for the rest of the year as Germany, which has been in recession for the past two years, is not seen making a significant recovery.
More economic momentum is not expected until next year, when the government's $586 billion (500 billion euro) investment fund is expected to take effect. specially when roughly 141,000 employees worked at the affected companies, an increase of 6 percent, driven by large-scale insolvencies, the agency said.
"The persistently high level of insolvencies is increasingly triggering chain reactions," said Hantzsch. Consumer insolvencies have also been on the rise, up 6.6 percent to around 37,700, as households are under pressure due to a rise in the cost of living and job losses, particularly in industry.
Germany's federal statistics office reported final first-quarter insolvency figures earlier this month that showed corporate insolvencies rose by 13.1 percent.
