German Insolvencies Surge to Levels Comparable to 2009 Financial Crisis

The number of insolvencies in Germany reached a 10-year high in 2024, driven by economic pressures and lingering effects from past crises.

Germany recorded approximately 121,300 insolvency cases in 2024, marking a 10.6% increase from the previous year and the highest level since 2015.
Experts note that monthly insolvency rates have reached 20-year highs, comparable to those seen during the 2009 financial crisis.
Economic challenges such as rising interest rates and residual effects from the COVID-19 pandemic and years of low interest rates are key contributors to the surge.
The current wave of insolvencies is impacting larger businesses more significantly, leading to greater economic losses than in previous downturns.
Projections indicate that insolvency rates may remain elevated in 2025, even if the economy begins to recover, due to a backlog of delayed cases.