In October 2024, Germany experienced a significant rise in corporate insolvencies, with a 22.9% increase compared to the same month in 2023, marking the highest monthly figure for October since 2004.

The percentage of businesses fearing for their economic survival rose to 7.3% in October 2024, up from 6.8% a year earlier, indicating a growing trend in corporate distress.

August 2024 alone saw 1,764 insolvency cases, a 13.4% increase from the previous year, with creditor claims totaling approximately €2.4 billion.

This surge in bankruptcies reflects ongoing economic challenges, including sluggish overseas demand, a shortage of skilled workers, and increasing competition from countries like China.

Experts attribute the current wave of insolvencies to prolonged economic weakness and sharply rising operational costs, which are impacting even previously stable businesses.

The German Chamber of Industry and Commerce (DIHK) highlights that collapsing demand, high energy costs, and burdensome bureaucracy are significant contributors to the struggles faced by businesses.

Economist Steffen Müller noted that many companies that survived the pandemic and benefited from low interest rates are now under severe financial pressure due to increased costs.

In contrast to the rise in corporate bankruptcies, consumer insolvencies decreased by 2.9% to 5,672 cases during the same period.

In August 2024, the transportation and storage sector reported the highest rate of insolvencies at 9.2 cases per 10,000 firms, followed by the hospitality industry.

Over the past five years, Germany's GDP has only grown by 0.1% in real terms, highlighting its lagging economic performance in international comparisons.

Despite a rise of over 20% in bankruptcies in 2023, the total number of corporate bankruptcies was 17,814, which remains relatively low compared to historical figures, particularly during the 2009 financial crisis.

Experts predict that the upward trend in corporate insolvencies will continue amidst ongoing economic difficulties, suggesting that the situation may worsen in the near future.