German Corporate Insolvencies Surge, Highest in Nearly a Decade

A 24% increase in 2024 insolvencies highlights economic challenges, with further rises expected in 2025.

Germany recorded 22,400 corporate insolvencies in 2024, a 24% increase from the previous year, marking the highest level since 2015.
Small businesses, particularly in services, retail, and construction, accounted for 81% of insolvencies, but large companies like Galeria Karstadt Kaufhof and Esprit also faced financial collapse.
Experts attribute the crisis to prolonged economic challenges, including high energy costs, supply chain issues, and reduced consumer spending, exacerbated by global economic uncertainty.
The financial impact includes €56 billion in creditor losses and 320,000 jobs affected, with insolvencies projected to approach 2009-2010 levels when over 32,000 companies failed.
Economic analysts warn that without structural reforms and greater policy stability, the insolvency trend will persist into 2025, reflecting broader weaknesses in Germany's economic framework.