Analysis by IWH shows that 5,300 jobs were affected in the top 10 percent of companies that filed for bankruptcy in August.
(Photo: imago images/Jochen Tack)
Berlin According to the IWH Institute, the number of company bankruptcies in Germany increased noticeably in August compared to the previous year. Accordingly, there were 718 bankruptcies of partnerships and corporations. That is 26 percent more than in August 2021, as the Halle Institute for Economic Research (IWH) announced on Tuesday.
An increasing number of bankruptcies is to be expected in the autumn. “After a long period of low insolvency numbers, a trend reversal has now set in,” states IWH expert Steffen Müller.
This is primarily due to the sharp rise in prices for important production factors. While the Ukraine war is leading to higher energy costs, disruptions in international supply chains are responsible for the rise in the price of many imported intermediate goods.
The turnaround in interest rates announced by the European Central Bank (ECB) will also increase companies’ refinancing costs. A cost factor for many companies is also the minimum wage increase from October.
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“The rising insolvency figures show that many companies are expecting permanent cost increases that will make their business model unprofitable,” said IWH expert Müller. However, despite rising numbers, there is currently no talk of an imminent wave of insolvencies. For October, however, the leading indicators of the IWH indicate significantly higher insolvency figures, which could therefore be around a third higher than in October 2021.
Analysis by IWH shows that 5,300 jobs were affected in the top 10 percent of companies that filed for bankruptcy in August. The number of employees affected is at the level of the past twelve months.
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