German Corporate Insolvencies Surge Amid Economic Woes

German corporate insolvencies are set to reach a decade-high in 2025, with about 23,900 companies expected to file. Rising structural challenges and debt are pressuring businesses, especially small and medium-sized ones. Personal insolvencies are also on the rise, highlighting over-indebtedness among German citizens.

Corporate insolvencies in Germany are anticipated to reach their highest level in over ten years, according to a study revealed by Creditreform. The forecast for 2025 sees about 23,900 companies filing for bankruptcy, an 8.3% increase over 2024 and the highest since 2014.

The report signals serious structural challenges for German businesses, particularly smaller firms that constitute a large share of insolvencies. Rising energy costs, regulatory pressures, and growing indebtedness are significant contributors to this surge, as highlighted by Patrik-Ludwig Hantzsch, Creditreform's head of economic research.

Beyond the corporate sector, consumer insolvencies are also projected to rise by 6.5% in 2025, reaching the highest level since 2016. This is attributed to increasing over-indebtedness, high living costs, and job instability, affecting millions of households across the nation.

(With inputs from agencies.)