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IWH: Repeated slight decline in insolvencies

The number of company insolvencies is still significantly higher than before the coronavirus pandemic. However, there have recently been signs of a slight easing. The question is: for how much longer?

The number of company insolvencies remains well above the level before the coronavirus pandemic....
The number of company insolvencies remains well above the level before the coronavirus pandemic. However, there have recently been signs of a slight easing. (archive image)

Company bankruptcies - IWH: Repeated slight decline in insolvencies

Despite a significant increase in the number of insolvencies in the first half of the year compared to the previous one, a slight decrease is noticeable, according to the Leibniz Institute for Economic Research Halle (IWH). The decrease in insolvencies has been observed for the second month in a row, IWH reports. The decline is observed across various industries, as highs were reached in many sectors in April, but the numbers are now significantly lower. However, insolvencies have been above average since last year, that is, before the Corona pandemic.

According to IWH insolvency trend, the number of company insolvencies in June was 1,169. However, no stable trend can be discerned for the coming months based on early indicators.

For its study, the Institute evaluates the current insolvency announcements of the German registration courts and links them with the financial statement data of the affected companies.

The Halle Institute for Economic Research (IWH) noted a decrease in corporate insolvencies for the second consecutive month, despite a significant increase in the first half of the year. This decline in insolvencies is observed across various industries in Saxony-Anhalt, Germany, with numbers significantly lower than the highs reached in April. Despite this decrease, insolvencies have remained above average since last year, even before the onset of the Coronavirus pandemic.

The Institute's insolvency trend report revealed a total of 1,169 company insolvencies in June 2021. However, early indicators fail to show a stable trend for the forthcoming months.

The IWH's analysis is based on the current insolvency announcements made by German registration courts and the financial statement data of the respective companies.

The decreasing trend in company insolvencies is a positive sign, but the economic situation of many companies in Germany, particularly those affected by the Coronavirus, remains uncertain.

In light of these findings, further support and measures may be necessary to prevent a surge in company bankruptcies and ensure economic stability in Germany and Saxony-Anhalt.

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