Increase in bankruptcies of firms in Germany

2024-02-18 11:02:00, Kosova & Bota CNA

Increase in bankruptcies of firms in Germany

The German economy is not doing well at the moment. The conditions are difficult: low economy, high interest rates, high energy prices - all these have led to an increase in the number of bankruptcies.

The number of registered bankruptcies has increased by 26.2% compared to the same period last year, the Federal Statistics Office announced. In December 2023 there was only an increase of 12.3%. In these statistics, it should be taken into account that the bankruptcy figures are entered only after the first court decision, but the time of bankruptcy in many cases is about three months ago.

Increase in bankruptcies of firms in Germany

The researcher of the Institute for Economic Studies in Halle, Steffen Müller, says that "developments in the issue of bankruptcies remain dynamic and in the coming months the numbers tend to increase." In addition to the current difficult conditions for the economy, another factor also plays a role. Corona state aid was often offered to firms that had productivity problems before the crisis.

State support and a partial abolition of the obligation to file for bankruptcy have previously kept the number of bankruptcies in Germany low, despite the Corona pandemic and the energy crisis. The increase in bankruptcies was expected, according to experts./ DW

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