Germany saw 5,209 companies file for bankruptcy in the first quarter of 2024, a 26.5% increase from the same period in 2023. Experts anticipate a total of about 20,000 corporate insolvencies this year, indicating a continuation of the trend.
The transport and warehousing sector had the highest number of insolvencies per 10,000 companies in early 2024, followed by the construction industry and other economic services. Manufacturing also experienced significant insolvency rates.
Creditors' claims from corporate insolvencies in Germany until March 2024 were estimated at about 11.3 billion euros, reflecting a substantial increase from the previous year. Consumer bankruptcies also rose by 4.8% compared to 2023.
While recent export figures for Germany seemed promising, Chief Economist Carsten Brzeski labeled them as 'another cold shower for optimists.' Factors like global economic slowdown, high energy prices, and rising interest rates have impacted Germany's export-driven economy.
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