Increase in bankruptcy filings observed during the initial half of 2024 versus the corresponding period in the preceding year
In Germany, a larger number of businesses went bankrupt within the initial six months of 2024 compared to the same period in 2023. As per the Federal Statistical Office in Wiesbaden, approximately 10,700 businesses filed for bankruptcy between January and June 2024, representing a rise of 24.9% compared to the same period in 2023. Consumer bankruptcies also trended upward.
This trend persisted in August 2024, with a growth rate of 10.7%, marking the sixth consecutive month with double-digit escalation. The increase in June was slightly less than in other months, at 6.3%.
Despite a decrease of 9% in the number of bankruptcies in August, reaching 1,282 as reported by the Leibniz Institute for Economic Research Halle on Tuesday, researchers in Halle still noted a significant increase compared to the previous year.
The German Chamber of Industry and Commerce (DIHK) labeled these figures as "alarming" and anticipates "well over 20,000 corporate bankruptcies" in 2024. The figures in the manufacturing sector are particularly worrisome, according to Marc Evers of the DIHK, who advocated for a "breakthrough" in red tape reduction, clarity in energy supply, and tax relief.
The rise in consumer bankruptcies in the first half of 2024 was subdued at 6.7%. Overall, there were more than 35,000 instances of consumer bankruptcy.
The German Chamber of Industry and Commerce (DIHK) expressed concern about the banking sector, urging for action in reducing red tape and providing tax relief at the federal office level. The increase in corporate bankruptcies was also highlighted by the DIHK, with expectations of over 20,000 bankruptcies for the entire year, at the federal office in Germany.
