The Leibniz Institute registered 44 percent more company bankruptcies than in October 2022 and 12 percent more than the October average for the years 2016 to 2019. Who was particularly affected?
The number of corporate bankruptcies in Germany rose slightly in October. As can be seen from the insolvency trend of the Leibniz Institute for Economic Research in Halle, it was 1037. This is 44 percent more than in October 2022 and 12 percent more than the October average for the years 2016 to 2019, the IWH announced on Tuesday.
“The increase in the number of insolvencies in October marks a turnaround,” says Steffen Müller, head of the IWH department responsible for insolvency research. Adjusted for working day effects, October was the month with the highest number of insolvencies since the end of the pandemic.
“But this is not yet a wave of insolvencies,” emphasized Müller. This cannot be recognized either. In 2003 and 2010 there were 2,000 bankruptcies, more than twice as many company bankruptcies per month as there are currently. What matters is how big the companies are.
According to IWH, most bankruptcies in October were in healthcare and industry. In the healthcare sector, several clinics and hospitals have recently filed for bankruptcy, said Müller. Many employees are always affected by this. The IWH expects the number of insolvencies to rise in the coming months.
Source: Stern
