German Corporate Bankruptcies Reach Decade High in H1 2025

Corporate bankruptcies in Germany reached their highest level in a decade during the first half of 2025, with some 11,900 insolvencies recorded, marking a 9.4% increase from the previous year. Creditreform's chief economist Patrik-Ludwig Hantzsch attributed the rise to weak demand, rising costs, dwindling financial reserves, and ongoing uncertainty, noting that the country remains in a deep economic and structural crisis amid a two-year recession. The manufacturing and retail sectors experienced notable increases in insolvencies, while the service sector accounted for the largest share, with about 7,000 cases. The economic damage from these bankruptcies totaled an estimated €33.4 billion, and roughly 141,000 employees were affected, a 6% rise driven by large-scale insolvencies. Consumer insolvencies also rose by 6.6% to around 37,700, as households face pressures from higher living costs and job losses. Recovery is not expected until next year when the German government's €500 billion investment fund is anticipated to stimulate economic momentum.