Report reveals elevated level of corporate collapses since 2010, with anticipation of an upward trend continuing.
"Germany's corporate insolvencies have seen a notable surge once more in Q3 this year, as per a recent report. This information was shared by ZDFheute on Wednesday, drawing from the Leibniz Institute for Economic Research Halle (IWH)'s insolvency trend. A staggering 3,991 insolvencies were recorded, slightly less than the record-breaking 4,071 seen in Q2 2010.
Steffen Müller from IWH commented to ZDF, stating, 'The insolvency situation is currently at a significantly higher level.' Germany's struggling economy and the catch-up effects of the coronavirus pandemic were cited as the contributing factors. Despite this, the scientists didn't suggest that the situation had improved, but rather predicted a continued rise in corporate insolvencies.
In the Q3 real estate sector, insolvencies saw a significant increase of 69% compared to the previous year. The number of business-related service insolvencies also rose by 31% compared to the same period last year."
The surge in corporate insolvencies in Q3 was highlighted by the trigger of a significant increase in insolvency filings, reaching 3,991. Steffen Müller, from IWH, attributed this to Germany's struggling economy and the catch-up effects of the coronavirus pandemic, indicating that the trigger might persist, leading to a predicted rise in insolvencies.
