Businesses in Germany continue to bleed… bankruptcies rise to staggering numbers

The ongoing difficult economic situation in Germany has pushed more companies into bankruptcy.

The Federal Statistical Office announced in Wiesbaden on Friday that the number of bankruptcies registered in March rose again by 5.7% year-on-year.

According to the data, the rate of increase in bankruptcies last month was in the single digits for the first time since June 2024, recording a 6.3% increase.

Bankruptcies aren’t included in the statistics until after the bankruptcy court’s initial decision.

In many cases, the actual date of filing for bankruptcy is approximately three months prior to the filing date.

According to final results, courts registered 1,830 corporate bankruptcies in January, with creditor claims totaling €5.3 billion.

The number of cases was 12.8% higher than the previous year. In January 2024, the value of claims reached €3.5 billion.

Again, most of the companies that were forced to declare bankruptcy were in the warehousing and transportation sector.

According to previous data, courts received 21,812 bankruptcy filings in 2024, a 22.4% increase compared to 2023, which already saw a 22.1% increase in bankruptcy filings compared to 2022.

The last time bankruptcies were recorded at a higher number was in 2015, when 23,101 cases were filed. The numbers were even higher during the 2009 global financial crisis.

The German Chambers of Industry and Commerce expect the wave of bankruptcies to continue to grow, with small businesses in particular complaining of liquidity constraints in surveys conducted by the chambers.

According to Volker Treier, chief analyst at the Association of German Chambers of Commerce and Industry, said this is another warning sign for the future ruling coalition, which must significantly ease the burden on the economy.