According to experts, more and more companies in Germany are threatened with insolvency due to the weakening economy and rising costs. According to an analysis by the Leibniz Institute for Economic Research Halle (IWH), the number of insolvencies of partnerships and corporations in September was 34 percent above the previous year’s figure. Around 760 companies were affected. As recently as August, the IWH forecast had predicted an increase in insolvencies of “only” 25 percent for September compared to 2021.
The number will continue to rise noticeably in the coming months, the IWH announced on Monday. According to the IWH, the previous year’s values could even be exceeded by 40 percent in November. The economic researchers see the reasons for this, in addition to the severely deteriorating economic situation, above all in rising costs for energy, wages and interest on loans, for example.
For the year 2022 as a whole, the economic researchers from Halle are somewhat more cautious in their forecast. Compared to 2021, the IWH expects an increase in company insolvencies of between 12 percent and 14 percent, since the insolvency figures in the first half of 2022 were still slightly below the previous year’s level.
