Insolvency on the withdrawal: a glimmer of hope for companies?
Insolvency on the withdrawal: a glimmer of hope for companies?
The mood in the German economy is broken in the latest statistics on insolvency proceedings. Fortunately, the number of regular bankruptcies requested in May 2025 decreased. According to the current data from the Federal Statistical Office, there was a decline in bankruptcy reports for the first time since March 2023 compared to the previous year. With a minus of 0.7 percent, the number of registered insolvency proceedings is 1,478 and thus shows a decrease of 9 percent compared to the previous month. Nevertheless, this relaxation can only be celebrated to a limited extent, since an increase in bankruptcies is predicted throughout the year 2025. Experts predict that the number of corporate slides could increase this year, despite the current decline, which zvw reports.
Although there were positive developments in May 2025, statistics reflect a worrying trend. In the first quarter of 2025, 5,891 corporate insolvencies were submitted, an increase of 13.1 percent compared to the previous year. The head of IWH insolvency research, Steffen Müller, expects slight declines in June, but the overall trend shows a worrying increase in bankruptcies. In 2024 the highest number of company bankruptcies has been recorded for almost a decade, with a total of 21,812 bankruptcies. The company landscape could also be continued for the next few months, since the effects of the resolved state corona aids, high energy costs and unstable political conditions are noticeable.
challenges for companies
A look at the causes shows that many companies have to deal with rising costs. Expensive energy prices and an excessive bureaucracy ensure an uncertain economic environment. These problems are not new, but the number of bankruptcies last year made it clear. Tagesschau reports that the bankruptcies rose by 16.8 percent in 2024. The claims of the creditors have also doubled, which illustrates the severity of financial burdens. In October 2024 alone, claims of around 3.8 billion euros were reported, which underlines the problems in many industries, especially in traffic, construction and hospitality.
It is particularly worrying that the current situation is tightened by the expires of exemptions, which were granted during the corona pandemic to protect companies. Christoph Niering, the chairman of the professional association of insolvency administrators, underlines that the increase in bankruptcies is a clear sign of the fundamental structural change in the German economy. The switch to alternative energy sources and the associated market changes make it particularly difficult to keep up with small and medium -sized companies.A look into the future
The economic framework has many experts with mixed feelings to look at the next few months. While some signs of a positive development in May speak, the signs for the year as a whole are still on storm. In 2025, the number of bankruptcies could exceed the record of 32,000, which was reached in the crisis year 2009. ZVW also quotes that various information is forecast an increase in company bankruptcies in the current year. It remains to be seen whether the economy can stabilize or whether the number of bankruptcies continues to increase.
Overall, the economic situation remains tense and shows that the challenges for many companies are still enormous. The coming months will be crucial to find out how well German companies can survive the storm front.
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| Ort | Waiblingen, Deutschland |
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