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Record high: Wave of insolvencies hits Germany - financial expert warns of rising numbers
According to a report from www.fr.de, the number of bankruptcies remains at a record high, with numbers continuing to rise in the coming months. There were 1,077 company insolvencies in January, which corresponds to an increase of 40 percent compared to the same month last year, and an increase of almost 20 percent compared to the January average for the years 2016 to 2019. The increasing number of insolvencies is attributed to difficult economic conditions and the repayment of the Corona aid paid during the pandemic. In particular, the repayment of aid is a burden on weak companies in a persistently difficult environment. The wave of bankruptcies not only affects companies that were already having problems before the pandemic, but also...
Record high: Wave of insolvencies hits Germany - financial expert warns of rising numbers
According to a report by www.fr.de, the number of bankruptcies remains at a record high, with numbers continuing to rise in the coming months. There were 1,077 corporate bankruptcies in January, an increase of 40 percent compared to the same month last year, and an increase of almost 20 percent compared to the January average for the years 2016 to 2019.
The increasing number of insolvencies is attributed to difficult economic conditions and the repayment of Corona aid paid during the pandemic. In particular, the repayment of aid is a burden on weak companies in a persistently difficult environment.
The wave of bankruptcies not only affects companies that had problems before the pandemic, but also key sectors such as the automotive and chemical industries as well as the real estate sector. These industries are facing various major challenges, such as the pressure from high energy prices in the chemical industry, the transformation to electromobility in the automotive industry and the interest rate turnaround in the real estate industry.
The increasing number of insolvencies and the impact on important key sectors could have a significant impact on the market and the financial sector. For example, this could lead to a shift in investments in certain sectors, as well as increased caution in lending to companies in these sectors. This development will further impact the economic recovery and requires close monitoring and adjustment of financial strategies.
The financial industry will have to adapt to the increasing number of bankruptcies and the key sectors affected in order to react appropriately and minimize potential risks.
Read the source article at www.fr.de