BERLIN. In the first half of 2024 alone, 11,000 companies filed for bankruptcy. Compared to the same period last year, this is an increase of almost 30 percent Credit reform economic research announced on Monday. “The number of bankruptcies in Germany has reached the highest level in almost a decade,” said the institute’s head, Patrik-Ludwig Hantzsch. This is therefore a higher value than in the years of the corona pandemic.
He cited “the consequences of the recession in 2023, ongoing crises and weak economic development this year” as reasons. “All this together is breaking the neck of many companies,” Hantzsch continued. The Figures rose in all four major economic sectors by at least 20 percentage points.
The number of personal bankruptcies increased by 6.7 percent
Service companies recorded the strongest growth: an increase of 34.9 percent compared to the same period last year. The majority of insolvency cases (59.1 percent) also belong to the services sector. “Business stability in Germany is currently shakier than it has been for years,” Hantzsch summarized the results.
But the number of bankruptcies among consumers also rose: an increase of 6.7 percentage points. A total of 35,400 people went bankrupt. The economic research institute analyzed that private insolvency can also be attributed to the rise in inflation and the change in interest rates. However, the amendment to the Consumer Insolvency Act at the end of 2020 also makes bankruptcy more attractive for debtors. The new arrangement enables faster repayment of the remaining debts. In short, Hantzsch predicts: “Economic development in Germany will likely be weak in 2024.”