MNI BRIEF: German Insolvency Rates Hit 14-Yr High - IWH
MNI (LONDON) - The number of German firms going bust rose 2% month-on-month in September to reach its highest level since 2010, according to the latest IWH Insolvency Trend, with around 23,000 jobs lost at the largest 10% of companies affected.
Some 3,990 partnerships and corporations were declared insolvent in Q3 2024, the most in a single quarter in the last 14 years. The number of employees affected was more than 50% August’s figure, 75% higher than in September 2023 and nearly four times above the September average between 2016 to 2019.
State-level rises were strongest in Bavaria and Baden-Württemberg, with business-related services, real estate and housing the worst affected sectors, with Head of Research Steffen Mueller attributing the sharp rise to the weak German economy and catch-up effects from the coronavirus pandemic.