More insolvencies in Bavaria too: few compared to the rest of Germany

Economic situation - More insolvencies in Bavaria too: few compared to the rest of Germany

The number of company bankruptcies in Bavaria is rising. According to estimates by the credit agency Creditreform, 44 out of every 10,000 companies in Bavaria will file for insolvency this year - that corresponds to one in every 227 companies. Last year, the rate was significantly lower at 35 insolvent companies out of 10,000. This was announced by Creditreform in Frankfurt am Main on Monday.

Compared to the rest of Germany, however, only a few companies in Bavaria are still running out of money. According to the report, Bremen has the highest insolvency rate with 120. According to Creditreform, there are only fewer insolvencies in Thuringia with 40 per 10,000 companies and in Brandenburg with 43. The credit agency's experts suspect that these regional differences are due, among other things, to differences in regional industry structures and different age structures in the companies.

Creditreform expects 18,100 companies throughout 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.

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1. Despite the rising insolvencies in Bavaria, the rate is still lower than in many other German states, such as Bremen with its 120 insolvencies per 10,000 companies.
2. The credit reference agency Creditreform, based in Frankfurt on the Main, predicts that by the end of the year, 18,100 companies across Germany will have filed for insolvency, marking a 23.5% increase compared to the previous year.
3. Companies in Munich, known as the economic powerhouse of Bavaria, have also seen an increase in insolvencies, but they still have a relatively low rate compared to other parts of Germany.
4. The economic situation in Germany as a whole is not looking particularly favorable, with experts at Creditreform agreeing that the trend of rising insolvencies is likely to continue.
5. Despite the increase in insolvencies, Bavaria still has one of the lowest rates of company bankruptcies in Germany, with only Thuringia and Brandenburg having fewer insolvencies per 10,000 companies.
6. The reasons for the regional differences in insolvency rates, as suggested by Creditreform, include differences in regional industry structures and different age structures in the companies.

Source: www.stern.de