Let's Take a Gander at the State of Business Bankruptcies in Germany: Fewer New Cases but Still a Long Haul Ahead
Decrease in Recent Bankruptcy Filings Reported - Recent reports indicate a decrease in the number of new bankruptcies.
The landscape of business bankruptcies in Germany shows a smidgen of optimism. Incredibly, for the first time since March 2023, there were fewer insolvency filings in a given month compared to the same period last year, as per the Federal Statistical Office's preliminary data for May.
In May 2025, the statisticians in Wiesbaden recorded a 0.7% decrease in insolvency applications compared to the same month in 2024. This is a welcome change after a spike in the two preceding months, with growth rates in the single-digit range.
But let's not get too carried away; it's yet to be seen whether all the filed cases will be actually processed by the insolvency courts and included in these official statistics. As per the Federal Office, the actual date of the insolvency filing usually lies approximately three months prior.
Morebusiness Bankruptcies than Last Year, You Ask? Yep, That's the Tea!
A downward trend in business bankruptcies was also noticeable in the latest monthly analysis by the Leibniz Institute for Economic Research Halle (IWH). After hitting a 20-year high in April, the number of business bankruptcies in Germany noticeably decreased in May, according to IWH data. There were 1,478 business bankruptcies, a 9% decrease from the previous month but a 17% increase from May 2024.
"The leading indicators suggest a slight decrease in insolvency numbers for June," prophesied Steffen Müller, head of IWH's insolvency research. But here's the kicker—he expects to see more business bankruptcies in Germany in the foreseeable future than in the previous year.
Ready for a Bump in the Numbers for the Whole Year?
Several credit agencies anticipate a higher number of business bankruptcies throughout the year 2025 compared to 2024. In 2024, a whopping 21,812 cases were registered, as per official figures. The increase was expected following the expiration of state aid for the corona pandemic. Additionally, high energy prices, a whole lot of bureaucracy, and political uncertainty are weighing heavily on the companies.
According to the final figures, local courts reported 5,891 insolvency applications for companies in the first quarter of 2025, which represents a 13.1% increase compared to the same period last year, as reported by the Federal Statistical Office. The creditors' claims amounted to around 19.9 billion euros after 11.3 billion euros in the first quarter of 2024.
- Business Bankruptcy
- Germany
- Insolvency
- Federal Statistical Office
- Wiesbaden
The decrease in new business bankruptcy cases in May 2025, as reported by the Federal Statistical Office, may signal a promising trend, but the actual number could increase once all filed cases are processed. The financial burden on companies, including high energy prices, bureaucracy, and political uncertainty, could lead to more business bankruptcies in Germany in the foreseeable future.
To mitigate this trend, a proactive approach could be taken through community initiatives, such as offering vocational training programs, that encourage entrepreneurship and financial stability among businesses in Germany. This could potentially decrease the number of business bankruptcies and bolster the national economy.
