The highest level in twelve years
The number of bankruptcies has increased significantly and no improvement is expected
Updated 11/14/2025 – 10:37Reading time: 2 minutes
In the midst of German economic stagnation, many companies are running out of steam. The number of bankruptcies also increased in October – for example in construction and the catering industry. Experts predict no improvement until 2027.
The wave of bankruptcies in the German economy shows no signs of stopping. The number of corporate bankruptcies also increased significantly in October. According to preliminary information, the Federal Statistical Office recorded 6.5 percent more bankruptcy proceedings registered in the month compared to the same period last year.
However, the process is only included in the statistics after the bankruptcy court’s initial decision. The time to file for bankruptcy is often almost three months in advance.
In August, when final data became available, the numbers jumped even more significantly: district courts reported 1,979 companies filed bankruptcy reports – a twelve percent increase over the previous year. Creditor claims amounted to around 5.4 billion euros, more than double compared to the same month last year (2.3 billion euros).
Based on 10,000 companies, there were 5.7 companies that experienced bankruptcy in August, the most in the transportation and warehousing sectors, followed by construction and catering. At the same time, the number of consumer bankruptcies increased eight percent to 6,132 cases.
“The economic situation remains very tense – and this is increasingly detrimental to the company’s existence,” said DIHK chief analyst Volker Treier. “In twelve years, not many businesses have had to stop their business and give up completely in one August.”
He asked for help immediately. The steps presented by the federal government to reduce bureaucracy are only the first step. “The electricity tax reduction promised to all companies must not be delayed any longer.” In addition, increases in social security contributions must be limited so as not to further endanger competitiveness.
The number of bankruptcies in the German economy has been increasing for months. Credit agencies estimate that more companies will go bankrupt this year than in 2024. However, according to official figures, there were 21,812 cases, the highest number since 2015.
The list of problems companies face is long: expensive energy, a lot of red tape, and consumers’ reluctance to spend money. In addition, the extraordinary regulations used by the state to quell the wave of bankruptcies resulting from the corona pandemic have ended.
Credit insurance company Allianz Trade estimates there will be 24,500 companies going bankrupt next year, which is an increase of one percent. The consequences of trade conflicts can test companies’ resilience, according to a recent study.
The situation in Germany may improve in 2027, also thanks to economic stimulus measures from the federal government. Allianz Trade later estimated a decline in bankruptcies of around four percent to 23,500 cases.
