The number of company bankruptcies in Germany rose by nearly a third in May compared to the previous year, according to official data, indicating a trajectory towards levels not seen in the country since 2017. Figures published by the German Federal Statistical Office on Friday revealed that local courts reported 1,934 company bankruptcies with claims totaling approximately 3.4 billion euros (3.7 billion dollars). This marks an increase of 30.9 percent in total corporate bankruptcies compared to the same period last year, with preliminary data indicating rises of 6.3 percent and 13.5 percent for June and July, respectively.
The German economy has been struggling since Russia cut off gas supplies, which Germany relies on for its industry. The GDP unexpectedly contracted in the second quarter, and the European Commission expects growth of just 0.1 percent for the entire year. The Association of German Chambers of Industry and Commerce stated, "Warning signs regarding company bankruptcies are increasing," adding that it anticipates the total number to surpass 20,000 for the first time since 2017. They emphasized the urgent need to alleviate energy costs, taxes, bureaucracy, and to expedite approval and planning procedures to provide companies with better conditions for business success once again. Earlier, the Institute for Economic Research (IWH) in Halle, eastern Germany, reported that the number of company bankruptcies in Germany rose by a third in July, reaching 1,406 cases.
