What’s also notable: total creditor claims more than doubled in 2024 to €58.1 billion, compared to €26.6 billion in 2023. This surge is mainly due to a 127% rise in large-scale bankruptcies (with claims exceeding €25 million), reaching 314 cases.
Some analysts, such as Creditreform, are sounding the alarm and warn that the situation could surpass the crisis years of 2009. Others, like economists from the Leibniz Institute for Economic Research in Halle, see cautious signs of stabilization.
1999 - 2024
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Several sectors in Germany are struggling:
Industry: +24% bankruptcies
The manufacturing sector, long the backbone of the German economy, is being hit hard. The automotive industry in particular is suffering due to the difficult transition to electric vehicles, reduced production, and declining demand in key markets like China.
Construction: +20%
Retail: +25%
Transport and logistics: +16%
These sectors are facing pressure from rising costs, changing consumer behavior, and global uncertainties.
According to Steffen Müller, head of insolvency research at the IWH in Halle, the high bankruptcy numbers can partly be explained by what he calls “catch-up effects.” During the pandemic and the years of ultra-low interest rates, many weak businesses were artificially kept afloat through government support and cheap loans.
Now that interest rates have risen and government aid has disappeared, many of these companies are running into trouble after all. Müller sees this correction as painful but necessary: “It clears out the market and makes room for healthy, future-proof companies.”
For businesses working with German partners or considering entering the German market, this is crucial information. Always assess your business partner’s financial health and stay alert to risks in vulnerable sectors. Consider credit insurance or other forms of risk management where appropriate.
MODINT Credit & Finance, a specialist in Dutch-German trade relations, can support with credit checks, debtor management, and contract advice.
Source: FECMA
