Based on 10,000 companies, there were twelve insolvencies in the past quarter.
(Photo: IMAGO/Lobeca)
Berlin In the midst of the recession, company bankruptcies in Germany are increasing noticeably. In the first quarter, the number of corporate insolvencies applied for increased by 18.2 percent compared to the same period last year to 4117, as the Federal Statistical Office announced on Friday.
The probable claims of creditors from the reported corporate insolvencies also increased significantly: the local courts put them at around 6.7 billion euros, after around 3.9 billion euros a year earlier.
On the other hand, the number of consumer bankruptcies has fallen: it fell by 2.1 to 16,676. From January to March, the German gross domestic product shrank by 0.3 percent and thus for the second quarter in a row, which is why Europe’s largest economy is in a so-called technical recession.
Based on 10,000 companies, there were twelve insolvencies in the past quarter. Most were in the transport and warehousing sector with 26 cases. This was followed by the areas of mining and quarrying and other economic services (e.g. temporary employment agencies) with 20 cases each.
The lowest frequency with only one insolvency per 10,000 companies was in the energy supply.
Negative trend could continue
The negative trend in company bankruptcies could continue in the quarter that is coming to an end. This is indicated by the development of the standard insolvencies applied for, which increased by 3.1 percent in May compared to the same month last year.
In April there was already an increase of 4.8 percent. These proceedings are included in the statistics only after the first decision of the insolvency court. In many cases, however, the actual time of filing for insolvency is almost three months earlier.
In addition, these statistics only show business closures that take place in the course of insolvency proceedings – but not those for other reasons or before the onset of acute payment difficulties.
More: Friedrich Merz: “Out there, there is sheer existential fear”