New Data Reveals High Insolvency Rate in Germany, IWH Study Shows
According to a recent trend report by the Institute for Economic Research Halle (IWH), the number of insolvencies in Germany’s person and capital companies reached a high level in January. The report, cited by the Handelsblatt, shows that a total of 1,342 insolvencies were recorded in January, with the number remaining relatively high in November and December of the previous year.
While the January figure is still 24% lower than the same month in 2024, it is significantly higher than the average January values between 2016 and 2019, prior to the COVID-19 pandemic. The trend report highlights a 49% increase in insolvencies compared to the pre-pandemic period.
The report also notes that the insolvency of the top 10% of companies in January affected a total of 13,500 jobs, a 20% decrease from the previous month but still a significant increase of 110% compared to the pre-pandemic period.
Steffen Müller, the head of IWH’s insolvency research, does not expect a further increase in insolvencies for February and March, stating that the current trend is not likely to continue.
The IWH insolvency trend report typically covers more than 90% of the jobs affected by corporate insolvency and 95% of the outstanding claims, providing a comprehensive picture of the insolvency landscape in Germany.