Business insolvencies in Germany experienced a boost of 19.2% in July
Germany has been experiencing a significant increase in corporate bankruptcies, a trend that began in 2023 and shows no signs of abating. According to the Leibniz Institute for Economic Research Halle (IWH), the number of company insolvencies has been on the rise since early 2023, following a period of decline[1][3].
In a worrying development, July 2025 saw 1,588 companies filing for bankruptcy, one of the highest monthly figures in 20 years[1][3]. This marked a notable year-over-year increase of 19.2 percent in new insolvencies compared to July 2024[2]. The provisional figures for the increase in corporate insolvencies in July were released by the Federal Statistical Office.
The total number of insolvencies in 2024 was already the highest since 2015, with forecasts expecting even more bankruptcies in 2025 compared to 2024[1]. This surge in bankruptcies has exceeded the pre-pandemic levels of 2019, though they remain relatively low compared to historical norms from the late 2010s[2].
Examples of significant corporate bankruptcies in Germany in 2023 include Allgaier, an automotive company that filed for insolvency in June 2023[4]. The increase in corporate insolvencies may indicate economic instability and could have a ripple effect on businesses and employment in Germany.
It is worth noting that the number of insolvencies in June was not yet released by the Federal Statistical Office, and the time between the insolvency application and its processing is approximately three months. Therefore, the increase in insolvencies in June may not be fully reflected in the official statistics yet.
The decrease in insolvencies in May may have been a temporary respite, but the upward trend in corporate bankruptcies continues. This trend reflects ongoing economic challenges and dampens hopes for a rapid recovery of Germany's economy[1][3].
[1] Leibniz Institute for Economic Research Halle (IWH). (2025). Insolvencies in Germany: Trends and Outlook. Retrieved from https://www.iwh-halle.de/en/research/insolvency-research/insolvencies-in-germany
[2] Federal Statistical Office of Germany. (2025). Corporate Insolvencies in Germany: 2023-2025. Retrieved from https://www.destatis.de/en/topic/business-and-industry/insolvencies.html
[3] Statista. (2025). Corporate Insolvencies in Germany: Historical Data and Forecasts. Retrieved from https://www.statista.com/statistics/1126561/germany-corporate-insolvencies/
[4] Reuters. (2023, June 1). German automotive supplier Allgaier files for insolvency. Retrieved from https://www.reuters.com/business/autos-transportation/german-automotive-supplier-allgaier-files-insolvency-2023-06-01/
The community could consider implementing a policy focused on supporting vocational training, with emphasis on creating a stable business environment, to prevent future corporate bankruptcies, as the increased financing of such programs might alleviate financial stress for businesses. The rise in vocational training opportunities within the community could potentially foster resilience among businesses and help them adapt to economic challenges, thus contributing to the long-term stability and growth of the local economy.
