Number of corporate insolvencies in Germany continues to rise to a 20-year high

According to the statisticians' data, the sectors particularly affected are transportation and storage with 43.9 cases, as well as the hospitality and construction industries. Even if the absolute figures in these sectors are particularly high, the Federal Statistical Office points out that the year-on-year development is primarily attributable to a cluster of large insolvencies.

IWH: Record level for corporations

The Halle Institute for Economic Research (IWH) has identified the highest insolvency level for partnerships and corporations in more than 20 years. Per 10,000 companies, there were 24.1 insolvencies in the current year up to and including April, corresponding to a long-term record level.

According to the statistics, creditors' claims in the total of 8,551 recorded cases amounted to around 13.9 billion euros. This is significantly less than in the same period last year, when creditor claims of 22.5 billion euros were registered. The difference is mainly explained by the fact that in the first four months of 2025, a disproportionately high number of large-volume proceedings had been recorded.

Creditor claims lower than in the previous year

Despite the decline in the total amount of claims, economic researchers view the development critically. The persistently high number of proceedings indicates that the economic weakness is becoming increasingly entrenched in large parts of the German economy. Small and medium-sized enterprises in particular are coming under increasing pressure when orders are lacking and energy and personnel costs remain high.

The Association of German Chambers of Industry and Commerce (DIHK) had pointed out the growing burden on the Mittelstand – Germany's small and medium-sized enterprises – on several occasions in earlier statements. The current figures underscore this assessment: A wave of bankruptcies in the aforementioned sectors has immediate consequences for employees, suppliers, and regional economic structures.

Outlook: No quick relief in sight

The statisticians point out that monthly fluctuations are also influenced by individual large proceedings. Nevertheless, the number of monthly insolvencies since the beginning of the year has consistently been above the level of the respective month of the previous year, so that a structural trend can be assumed rather than a one-off outlier.

For the coming months, economic researchers expect the situation to remain tense. Should the economic recovery be delayed, a rapid decline in insolvency numbers is not to be expected, according to the IWH. Companies, creditors, and employees must prepare for further proceedings.