Increase in major bankruptcies in Germany: Construction industry hardest hit, according to a study by Allianz Trade.

Increase in major bankruptcies in Germany: Construction industry hardest hit, according to a study by Allianz Trade.

According to a report by www.agrarheute.com According to a study, the number of major bankruptcies in Germany has increased significantly. The construction industry is particularly affected, according to an analysis by the credit insurer Allianz Trade. In 2023, there were already 45 bankruptcies of companies with annual sales of at least 50 million euros in the first nine months, indicating a trajectory towards the record level of 2020.

The effects of this development could be complex. An increase in major bankruptcies in the construction and (fashion) retail sectors indicates financial difficulties in these sectors. This could lead to a decline in investment and a reduction in consumer confidence. In addition, hospital bankruptcies impact healthcare delivery and could place a strain on the healthcare system.

This could also have consequences for the financial industry. An increase in bankruptcies indicates that lenders and credit insurers are exposed to an increased risk situation. This could translate into higher interest rates and tighter credit standards, which in turn could affect economic activity.

Overall, the development points to economic uncertainty that needs to be carefully monitored and assessed in order to respond appropriately to potential risks.