The business - Bankruptcy statistics decrease for the first time.
Insolvencies in Germany have seen a decrease for the first time since November 2023, as reported by the Institute for Economic Research in Halle (IWH). In May, the number of insolvencies dropped by seven percent compared to the previous month, reaching a total of 1,271. This is a slight improvement after three consecutive record-high months in a row, as reported by the IWH in April.
However, the recent decrease in insolvencies is not yet significant, as the figure is still 40 percent higher than the level reported in May 2022 and 31 percent above the average for May from 2016 to 2019, the year before the Corona pandemic.
According to the IWH, the number of insolvencies in June is expected to fall further, but starting from a still comparatively high level. Consequently, insolvency figures may remain above pre-pandemic levels for longer. The statistics displayed by the IWH involve evaluating current insolvency notifications from district and regional courts in Germany, which are then linked to balance sheet data of the affected businesses.
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The Halle Institute for Economic Research (IWH) in Germany has reported a decrease in insolvencies, with a seven percent drop in May 20XX compared to the previous month. Despite this decrease, the number of insolvencies is still 40 percent higher than the level reported in May 2022 in Saxony-Anhalt. The IWH expects the number of insolvencies in June to continue decreasing, but to remain above pre-pandemic levels due to the high starting point.
