The number of company bankruptcies is increasing in Germany - financial experts express concern

The number of company bankruptcies is increasing in Germany - financial experts express concern

According to a report by www.tagesschau.de,

The insolvency of companies in Germany is increasing, especially in certain sectors. The credit agency Creditreform reports that while 30,000 to 40,000 companies went bankrupt every year at the beginning of the millennium, it expects 18,100 insolvent companies this year. The number of bankruptcies temporarily fell during the corona pandemic, but rose to 51 billion euros in damages in 2021 with fewer than 15,000 bankruptcy cases.

The logistics and construction sectors are particularly affected. In addition, sole proprietorships and entrepreneurial companies are particularly affected. The insolvencies of long-established, traditional companies affect far more people, even though they only account for a third of the insolvency cases. The credit agency sees little hope for improvement due to the burdens of the “green” transformation, a lack of digitalization, a lack of employees and high interest rates.

This development has a significant impact on the market and the financial industry. The increasing number of bankruptcies can lead to increased risk for suppliers, customers and financiers. In addition, jobs could be at risk. The higher damage amount with fewer bankruptcies shows that larger companies in particular are affected by the bankruptcies.

Overall, the current development points to a tense situation in the German economy, which could also influence the financial market. Measures to support businesses and create a positive economic environment should be considered to reverse the trend.