Over 200,000 jobs could be lost due to Iran war, report says

More than 200,000 jobs could be lost in Germany this year due to the war in Iran, German private broadcaster n-tv reported on Wednesday.

According to the credit insurer Allianz Trade, corporate insolvencies are expected to put over 200,000 jobs at risk in Germany this year.

“The Middle East conflict is already having a significant impact on Germany, and the US trade war is far from over,” said Milo Bogaerts, head of Allianz Trade in Germany, Austria, and Switzerland.

In Germany, the credit insurer expects the number of insolvencies to rise by 2.4 percent from the previous year to 24,650 cases. “That would be the highest level in 14 years,” Bogaerts added.

According to the Federal Statistical Office, German local courts registered 24,064 cases last year, a sharp increase of 10.3 percent.

Overall, Allianz Trade expects corporate insolvencies to rise by six percent globally, a faster pace than in Germany. Experts have revised the forecast upward due to the war in Iran, which is intensifying pressure on energy-intensive sectors such as transportation, chemicals, and metals, said company CEO Aylin Somersan Coqui.

Allianz Trade expects the trend in Germany to reverse next year: with insolvencies projected to decline by two percent to 24,150 cases.

According to the insurer’s assessment, war-related pressures are expected to ease and economic stimulus measures are likely to boost the economy.