Insolvencies - "Permanent burdens" for companies - number of bankruptcies on the rise
The economic downturn, higher interest rates and high energy prices have driven up the number of company bankruptcies this year. According to estimates by the credit agency Creditreform, 18,100 companies will 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. "More and more companies are collapsing under the constant pressure of high energy prices and the interest rate turnaround," explained Patrik-Ludwig Hantzsch, Head of Creditreform Economic Research, in Frankfurt at the presentation of the figures.
Like other experts, Creditreform expects a further increase in company bankruptcies. "In these difficult economic conditions, the number of insolvencies will continue to rise significantly in the coming months," said Hantzsch. The number of cases has therefore almost normalized and the 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.
In contrast, the robust situation on the labor market has so far prevented an increase in consumer bankruptcies. Although the downward trend of the previous year did not continue, the number of consumer insolvencies remained almost unchanged at an estimated 66,200 cases (2022: 65,930). However, in view of the weak economic outlook, Creditreform expects rising figures here too, especially as the over-indebtedness situation of many people has deteriorated significantly.
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The company's bankruptcy in Frankfurt on the Main is a stark reminder of the economic downturn affecting businesses across Germany. This unfortunate event contributes to the rising number of insolvencies, as reported by the credit reference agency Creditreform. In Frankfurt, the head of Creditreform Economic Research, Patrik-Ludwig Hantzsch, expressed concerns about the constant pressure of high energy prices and interest rate turnaround.
Germany, currently battling high energy prices, is seeing a 23.5% increase in company bankruptcies compared to the previous year, as predicted by Creditreform. Hantzsch anticipates a further increase in these numbers in the coming months due to the challenging economic conditions. Despite the robust labor market, consumer bankruptcies, though not significantly increasing, are expected to rise due to the weak economic outlook and deteriorating over-indebtedness situation.
Frankfurt, as a financial hub, and other cities across Germany, will likely see more workplaces closed due to company bankruptcies. However, the credit reference agency Creditreform, dedicated to economic research, plays a crucial role in tracking these developments and providing valuable insights for businesses and policymakers. The increased number of insolvencies can be attributed to a combination of factors, including the economic situation, high energy prices, and interest rate turnaround.
Source: www.stern.de
