Company bankruptcies in Germany hit record high since 2005

ISTANBUL

Business bankruptcies in Germany reached 17,605 last year, the highest since 2005, affecting approximately 170,000 jobs, the Halle Institute for Economic Research (IWH) reported on Thursday.

An IWH report showed that bankruptcy filings by companies and partnerships in Germany rose by 17% in December compared to the same month in 2024, reaching 1,519.

It noted that the number of bankruptcies in December was 75% higher than the average for December in the years 2016-2019 (before the pandemic).

The institute's statement underlined that even during the 2009 global financial crisis, this figure was about 5% lower.

The German economy remains fragile due to persistent weakness in the manufacturing sector, which plays a larger role than in other countries in the region.

The country's economy contracted by 0.2% in the second quarter after growing by 0.3% in the first quarter.

The economy narrowly avoided entering a technical recession in the third quarter of the year, with growth figures reported at 0%.

High energy costs, weak global orders, and high US tariffs are negatively impacting the country's economy.