Germany Sees Company Bankruptcies Soar

Germany's Federal Statistical Office (Destatis) on Friday said 5,209 companies filed for bankruptcy in Germany in the first three months of 2024 -- with the trend expected to continue. From a report: Experts think the number of corporate insolvencies in Germany will increase to about 20,000 cases this year as part of a longer-term pattern. The latest figure means corporate insolvencies are up 26.5% compared with the first quarter of 2023. They are also 11.2% more than in the first quarter of 2020 when 4,683 corporate insolvencies were filed before the COVID-19 pandemic had its full impact. The coronavirus pandemic period itself saw special, temporary regulations introduced and low insolvency rates. The transport and warehousing sector accounted for most insolvencies per 10,000 companies, with 29.6 cases at the start of 2024. This was followed by the construction industry with 23.5 cases, and other economic services such as employment agencies on 23 cases. Manufacturing saw 20.3 insolvencies per 10,000 companies. Local courts estimated the creditors' claims from the corporate insolvencies until the end of March was about $12.07 billion compared with $7.16 billion last year. There were also 17,478 consumer bankruptcies in the first quarter of 2024 a" an increase of 4.8% compared to the period in 2023.

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