Germany reported a 16.8% increase in insolvencies in 2024, compared to the previous year, preliminary data from the federal statistics office, Destatis, has found.
According to the data, in December 2024 alone, insolvencies were up by 13.8% compared to the same month the previous year.
Destatis noted that the reported statistics reflect applications filed after the first decision by the insolvency court, which often occurs several months after the initial application.
October 2024 was a particularly busy month for corporate insolvencies, with 2,012 cases reported, representing a 35.9% rise on October 2023. These insolvencies resulted in an €3.8 billion in creditor claims, more than double the €1.6 billion from the previous year.
Sector by sector
On a sector-by-sector basis, the transport and storage industry experienced the highest rate of insolvencies per 10,000 companies, with 11.5 cases per 10,000. This was followed by the construction industry with 8.9 insolvencies per 10,000 firms, and the hospitality industry, with 7.9 insolvencies per 10,000 companies.
Consumer insolvencies also rose by 10.8% in October 2024, totalling 6,237 cases over the course of the year.
Of the insolvency proceedings in Germany last year, around 30% were standard insolvency proceedings, which primarily include all proceedings by companies (around 55% of all standard insolvency proceedings). In addition, the standard insolvency procedure applies to persons who are economically active.
As the data indicates, the rise in insolvencies reflects a broader trend, highlighting the challenges businesses face in the current economic climate, amid declining business confidence among a number of key sectors. Read more here.
Elsewhere, Germany reported a slight increase in unemployment in November 2024, recent data from Destatis noted. The data showed that 46.1 million people were unemployed in Germany in November, marking a rise of 0.1% (24,000 people) from the previous month. In October, the increase was 12,000.
