Insolvency rate of companies in the southwest comparatively low

The company - Insolvency rate of companies in the southwest comparatively low

The economic downturn, increased interest rates and high energy prices have driven up the number of company bankruptcies this year - including in the southwest. However, the number of insolvencies among companies in Baden-Württemberg is comparatively low compared to the other federal states, as the credit agency Creditreform announced in Frankfurt on Monday.

Creditreform expects 46 insolvencies per 10,000 companies in Baden-Württemberg this year, compared to 37 in the previous year. Bremen has the highest insolvency rate with 120, while Thuringia has the lowest number of insolvencies with 40 per 10,000 companies. According to Creditreform, regional industry structures and different age structures of companies are likely to be responsible for the differences.

Creditreform expects 18,100 companies across Germany to have filed for insolvency by the end of the year. According to the calculations, this would be 23.5 percent more than in the previous year.

Like other experts, Creditreform expects a further increase in company bankruptcies. Special effects from the corona period have largely evaporated. In order to avert a wave of bankruptcies as a result of the pandemic, the state had granted temporary exemptions. In 2022, insolvency figures had already risen again for the first time since the 2009 economic crisis.

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1. Despite the economic downturn and high energy prices causing an increase in company bankruptcies nationwide, the insolvency rate in the southwest, specifically in Baden-Württemberg, remains comparatively low.
2. Creditreform, a credit reference agency based in Frankfurt, recently announced that Baden-Württemberg is expected to have 46 insolvencies per 10,000 companies this year, which is a slight increase from the previous year's 37.
3. Although Bremen has the highest insolvency rate in Germany with 120 insolvencies per 10,000 companies, the insolvency rate in Baden-Württemberg is still lower than many other federal states.
4. Thuringia has the lowest number of insolvencies with 40 per 10,000 companies, according to Creditreform's latest data.
5. Regional industry structures and different age structures of companies are likely to be responsible for the differences in insolvency rates among the federal states, as Creditreform suggests.
6. Creditreform also predicts that the number of company bankruptcies will continue to rise in Germany, with an estimated 18,100 companies filing for insolvency by the end of this year.
7. In Stuttgart, the financial hub of Baden-Württemberg, and other cities in the southwest, businesses are closely monitoring the economic situation and energy price changes to minimize their risk of insolvency and company bankruptcy.

Source: www.stern.de