By Maria Martinez
BERLIN (Reuters) – The number of German business insolvencies registered in the first half of the year jumped 12.2% from a year earlier, the statistics office said on Thursday, highlighting the challenges for Chancellor Friedrich Merz’s government in its efforts to revive economic growth.
Final results showed that local courts registered a total of 12,009 insolvencies in the first six months of 2025.
“The crisis continues and costs us jobs, value creation, and entrepreneurial potential every day,” said Volker Treier, chief analyst at the German Chamber of Commerce DIHK, adding that after two years of economic contraction many companies’ liquidity was strained.
The DIHK expects more than 22,000 corporate insolvencies this year, up from 21,812 last year, which was the highest level since 2015.
The volume of creditors’ claims in the first half of the year is estimated at around 28.2 billion euros ($32.97 billion), down from 32.4 billion euros in the same period last year.
This decline in claims, along with the simultaneous increase in the number of corporate insolvencies, is due to the fact that more economically significant companies filed for insolvency in the first half of 2024 than in the first half of 2025, the statistics office said.
A summer run of weak data has presented a sobering view of the government’s progress on its goal of reviving the economy.
Germany’s gross domestic product contracted in the second quarter, further dimming expectations of a sustained recovery, and exporters now face the impact of new U.S. tariffs.
According to preliminary figures, insolvencies in August rose by 11.6% compared to the same month last year.
The statistics office said the insolvency figures were preliminary as many procedures are initiated three months before they are registered. Applications are only included in the statistics after the first decision by the insolvency court.
Early indicators, which precede insolvency proceedings by two to three months, point to a slight increase in insolvencies in September and elevated levels in October.
“Although the level of the leading indicators suggests a high number of insolvencies in the autumn, their impact on the labour market is likely to remain moderate,” said Steffen Mueller, head of insolvency research at IWH.
German unemployment has hit three million for the first time in a decade.
($1 = 0.8554 euros)
(Reporting by Maria Martinez and Reinhard Becker; Editing by Ludwig Burger and Gareth Jones)
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