Published by Global Banking & Finance Review®
Posted on June 26, 2025
2 min readLast updated: January 23, 2026
Add as preferred source on Google
German corporate insolvencies hit a decade high in 2025, with 11,900 cases due to economic challenges. Consumer insolvencies also increased.
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)
Approximately 11,900 corporate insolvencies were registered in the first six months of 2025, marking a 9.4% increase from the same period last year.
Germany is experiencing a deep economic and structural crisis, with the country in recession for the past two years and no significant recovery expected until next year.
About 141,000 employees worked at the companies that went bankrupt, reflecting a 6% increase driven by large-scale insolvencies.
Consumer insolvencies have risen by 6.6% to around 37,700 due to increased pressure from the cost of living and job losses, particularly in the industrial sector.
The government's 500 billion euro investment fund is anticipated to take effect next year, which may provide some economic momentum and help address the insolvency crisis.
Explore more articles in the Headlines category
