German corporate insolvencies at highest level in a decade, study shows

BERLIN (Reuters) -Corporate bankruptcies in Germany were at their highest level in a decade in the first half of 2025, as firms in Europe's largest economy struggle with weak demand, rising costs and uncertainty, a study by economic tracking agency Creditreform showed on Thursday.

Some 11,900 corporate insolvencies were registered in the first six months of this year, 9.4% more than in the same period last year, the agency said.

"Germany remains in a deep economic and structural crisis," said Creditreform chief economist Patrik-Ludwig Hantzsch.

Companies are increasingly having problems as their financial reserves dwindle and loans are sometimes no longer being extended, added Hantzsch.

He warned that the risk of insolvencies remains high for the rest of the year as Germany, which has been in recession the past two years, is not seen making a significant recovery.

More economic momentum is not expected until next year, when the government's 500 billion euro ($586 billion) investment fund is expected to take effect.

Roughly 141,000 employees worked at the affected companies, an increase of 6%, driven by large-scale insolvencies, the agency said.

"The persistently high level of insolvencies is increasingly triggering chain reactions," said Hantzsch.

Consumer insolvencies have also been on the rise, up 6.6% to around 37,700, as households are under pressure due to a rise in the cost of living and job losses, particularly in industry.

Germany's federal statistics office reported final first-quarter insolvency figures earlier this month that showed corporate insolvencies rose by 13.1%.

($1 = 0.8529 euros)

(Reporting by Klaus Lauer, Writing by Miranda Murray; Editing by Hugh Lawson)