Less Corporate Insolvencies in Germany - Recession Easing Up?
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Temporarily Decreasing Consumer Confidence in Germany - Decline in Insolvencies Temporarily Observed in Germany - ...for the Time Being
There's a promising development in the German corporate world, as the number of insolvency applications dwindled for the first time since March 2023, compared to the same month the previous year. In May 2025, the Federal Statistical Office recorded a 0.7% drop in insolvency applications, with the initial data showing single-digit growth rates in the two preceding months.
However, some cases may not end up in official statistics, as the actual application date often lies about three months earlier, as stated by the Federal Office.
Insolvencies on the Decline, but Still High
The Leibniz Institute for Economic Research Halle (IWH) also reported a decrease in corporate insolvencies, after a record high in April. Despite this drop, the number of insolvencies in May 2025 was still 17% higher than in May 2024. Nevertheless, IWH head of insolvency research, Steffen Müller, predicts a slight decrease in insolvency numbers for June.
Anticipated Increase for the Year Ahead
Credit agencies anticipate more corporate insolvencies for the full year than last year, which saw a record high of 21,812 cases[1]. The increase is attributed to the end of state support due to the corona pandemic, as well as high energy prices, excessive bureaucracy, and political uncertainty.
According to the Federal Statistical Office, 5,891 corporate insolvency applications were filed in the first quarter of 2025, representing a 13.1% surge compared to the same period in 2024. The total creditor claims amounted to around 19.9 billion euros, more than double the amount in the first quarter of 2024[2].
- German Corporate Insolvencies
- Economic Recession
- Corporate Insolvency Trends
- Federal Statistical Office
[1] [link to search result source][2] [link to search result source][3] [link to search result source]
- In efforts to combat the anticipated increase in corporate insolvencies for the year ahead, the community could consider implementing a policy that encourages vocational training programs to aid businesses in staffing and financial management.
- As businesses continue to struggle with high energy prices, excessive bureaucracy, and political uncertainty, it might be beneficial for some companies to seek vocational training in finance, to better manage their finances and reduce the risk of insolvency.
