Economic Crisis in Germany Leads to a Significant Increase in Insolvencies
According to figures from the economic information provider Creditreform, published on Monday, the economic crisis in Germany has led to a significant increase in insolvencies. The number of corporate insolvencies rose to 22,400 cases in 2024, the highest level since 2015 (23,180 cases). Compared to the previous year, the number of cases increased by 24.3%.
“With a certain delay, the crises of the past few years are now hitting companies as insolvencies” said Patrik-Ludwig Hantzsch, head of Creditreform’s economic research. The economic policy stalemate and the declining innovative power have weakened Germany’s economic location. “Therefore, we expect a further increase in cases in 2025. This could soon bring insolvency numbers close to the highs of the years 2009 and 2010, when over 32,000 companies went bankrupt” Hantzsch said.
The number of consumer insolvencies also increased in 2024. A total of 72,100 new procedures were registered, an 8.5% increase compared to the previous year (66,450 cases). “The trend shift that was already visible in 2023 has intensified in 2024” said Creditreform’s Managing Director Bernd Bütow. The main causes of the increase are the sharply rising cost of living and higher interest rates on credits, which have significantly burdened consumers. In addition, the situation is being exacerbated by the increasing reduction of well-paid jobs.
Across Germany, a total of 121,300 insolvency proceedings were registered in 2024, an increase of 10.6% compared to the previous year (2023: 109,680 procedures).