Decline in Insolvencies Spotted in Germany
Insolvencies among individuals and businesses in Germany have experienced a drop for the first time since November 2023, as reported by the IWH, an institute for economic research based in Halle. This information was shared on Thursday. Not only has a decline in insolvencies been observed, but a further decrease is also underway.
In May, Germany saw a decrease of 1,271 insolvencies, which is a reduction of 7% from the previous month. However, these numbers are still 40% higher than those from the same month in the previous year and 31% higher than the average of May between 2016 and 2019, before the COVID-19 pandemic.
The IWH anticipates a continuation of this downward trend in June. Nevertheless, as the decline starts from a high point, the institute predicts that insolvencies will remain higher than pre-pandemic levels for a while.
The research by IWH is based on current insolvency notices from German district courts, which are then connected to the balance sheet details of the impacted companies.
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For the first time since November 2023, Germany has witnessed a decrease in insolvencies among individuals and businesses, marked by a reduction of 1,271 insolvencies in May, representing a 7% drop from the previous month. Despite this, the Number of insolvencies in May 2023 is still 40% higher than that of the same month in 2022 and 31% higher than the average of May between 2016 and 2019.
