The number of company bankruptcies has now increased again after a brief period of relaxation in the spring. According to economic researchers, there is a reason for this.
According to the Leibniz Institute for Economic Research Halle (IWH), the number of company bankruptcies has risen to a record high. In the third quarter of 2024, the number of bankruptcies was higher than in any other quarter since 2010. In addition to the current weak phase of the German economy, catch-up effects from the corona pandemic also played a role, said the head of IWH insolvency research, Steffen Müller. At that time, the number of bankruptcies was kept artificially low by government support programs. Many of the companies supported at the time were now in trouble.
In the third quarter of 2024, 3,991 insolvencies of partnerships and corporations were recorded, a record high in the past 14 years. The last time the figure was higher was in the second quarter of 2010 with 4,071 bankruptcies. At that time, the financial and economic crisis of 2008/2009 was still having an impact, according to a statement from the IWH.
Big climbs especially in Bavaria and Baden-Württemberg
Compared to the third quarter of 2023, the increase in insolvencies was greatest in the large federal states of Bavaria (+56 percent) and Baden-Württemberg (+42 percent). In terms of sectors, the increase in the large area of business-related services was high at 31 percent. Smaller sectors, such as real estate or housing, recorded an even larger increase of 69 percent.
For its study, the institute evaluates the current insolvency announcements from the German registry courts.
Communication IWH
Source: Stern
