Germany records largest increase in corporate bankruptcies since October

The number of bankruptcies of companies registered in Germany rose in July at its highest rate since last October.

The Federal Statistical Office in Wiesbaden announced on Monday that local courts recorded a 19.2% increase in new bankruptcy cases in July compared to the previous year.

Last May, the first decline in bankruptcies since March 2023 raised hopes for improvement, but the numbers began to rise again in June.

According to the office’s data, bankruptcy cases are often registered three months after the application is submitted.

Various credit agencies expect an increase in corporate bankruptcies for the entire year compared to 2024.

According to official figures, 21,812 cases were recorded last year, the highest number since 2015.

This increase was expected after the end of government support for insolvencies during the COVID-19 pandemic.

Rising energy prices, excessive bureaucracy, and political uncertainty are also causing additional burdens for businesses.

According to final data from the Federal Statistical Office, local courts registered 2,036 company bankruptcies in May 2025, a 5.3% increase over the previous year.