- The incidence of insolvencies is once more increasing by significant percentages.
In Germany, more businesses have submitted for financial collapse in August, with a 10.7% surge in filings recorded by the courts compared to the same month the previous year, as indicated by preliminary figures from the Federal Statistical Office. This marks the second time in 2023 that the number of insolvencies has risen by less than ten percent, the first occasion being in June.
It's still up in the air if all the recorded insolvencies will lead to formal proceedings. Upon reviewing the final figures, there were 10,702 corporate bankruptcy petitions filed in the first half of the year, representing a 24.9% increase compared to the same period in 2022.
Creditors are worried about a staggering 32.4 billion euros, a substantial increase from the 13.9 billion euros from the previous year. This indicates that the bankruptcy procedures are becoming more substantial on average. Companies operating in the transport and logistics sector have been hit the hardest. Staffing agencies and construction companies also frequently file for bankruptcy. There was also a 6.7% increase in consumer bankruptcies in the first half of the year, with 35,371 cases reported.
Press release by Destatis.
The Commission, being a part of Destatis, will closely monitor the rising number of insolvencies and their potential impact on the economy. The Commission is actively engaged in analyzing the increasing figures of corporate bankruptcy petitions and consumer bankruptcies.
