Berlin (Reuters) – Business failures in Germany have reached their highest level in ten years in the first half of 2025, due to a low demand, the cost increase and an uncertain economic context, shows a study published Thursday by the Creditreform design firm.
Some 11,900 business bankruptcies were recorded in the first six months of this year, 9.4% more than in the same period of the previous year, according to the study.
“Germany remains plunged into a deep economic and structural crisis,” said Patrik-Ludwig Hantzsch, economist at Creditreform.
German companies are increasingly in difficulty, because their financial reserves are diminishing and, in some cases, loans are no longer extended, added the analyst.
He also warned that the risk of failure would remain high for the rest of the year, because it is unlikely that the German economy, which in 2024 recorded its second consecutive year of recession, is significantly recovering.
The economic recovery should not be felt before the implementation in 2026 of the investment fund of 500 billion euros approved at the start of the year by the government of Friedrich Merz.
The number of employees working in these bankrupt companies amounts to around 141,000, according to Creditreform.
“The persistence of a high level of failures triggers more and more chain reactions,” notes Patrik-Ludwig Hantzsch.
(Klaus Lauer report, Diana Mandia)
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