Private individuals are less affected
The number of bankruptcies increases significantly in January
February 16, 2024, 1:39 p.m
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The economy in Germany has been in crisis for some time. This is noticeable in bankruptcies. Their share rose by more than 26 percent in January compared to the same month last year. Companies are particularly affected. A medium-sized business expert predicts that the numbers will continue to rise.
As in previous months, the number of corporate and consumer bankruptcies rose sharply in January. The number of bankruptcies filed with the local courts increased by 26.2 percent compared to the same month last year, as the Federal Statistical Office in Wiesbaden announced based on preliminary results. Since June 2023, there has been a consistent double-digit increase in insolvencies.
Final figures are usually available after three months, as the applications are only included in the statistics after a court decision. In November, 1,513 companies filed for bankruptcy, an increase of 15.3 percent compared to the same month last year.
In the eleven months from January to November 2023, the number of company bankruptcies rose by around 23 percent to over 16,000 cases, as the statisticians announced. Compared to the period before Corona in 2019, the number was still 6.5 percent lower.
The SME expert at the German Chamber of Commerce and Industry (DIHK), Marc Evers, explained: “The poor economic situation is increasingly reflected in the development of insolvencies. The negative trend in corporate insolvencies is getting worse.”
Small businesses in particular are affected
The DIHK economic survey published on Thursday confirms the development: “Among small companies with up to 20 employees, four percent currently see the risk of their own company going bankrupt. There are around three million companies in this size category and therefore around 85 percent of all companies Germany.”
Unfortunately, a look at the coming months does not promise any improvement, Evers continued: More and more companies are reporting increasing bad debts. According to the survey, 13 percent of all companies are affected by this. This is the second highest measured value in the DIHK statistics that have been kept since 2020.
Consumer insolvencies fell by 1.0 percent to 5,811 cases in November compared to the previous year. From January to October, 61,460 consumers filed for personal bankruptcy, a slight increase of 1.1 percent compared to the same period in 2022.