MNI BRIEF: Firm, Job Losses Up, But Turnaround In Sight - IWH
MNI (LONDON) - The number of German firms going bust rose again in February - up 7% on the previous month to 1,436 - according to data published by the Leibniz Institute for Economic Research Halle (IWH) on Thursday.
Around 19,000 jobs were affected at the top 10% of firms declared insolvent, some 40% more than in January, and 51% higher than in February 2024, IWH said.
However, lead indicators suggest that Germany could be on the cusp of a trend reversal, with the number of companies declared bankrupt expected to stagnate in the coming months. “It is possible that the years-long phase of rising insolvency figures has come to an end for the time being,” IWH’s Steffen Mueller said, noting that catch-up effects from the pandemic and the low-interest rate phase are currently flat.