12,000 German firms declare bankruptcy in six months
(MENAFN) Germany has experienced its highest number of corporate bankruptcies in ten years during the first half of 2025, according to a report by economic tracking agency Creditreform. The study, released on Thursday, revealed that around 11,900 companies went bankrupt between January and June, marking a 9.4% rise compared to the same period in 2024. These bankruptcies affected roughly 141,000 employees.
Creditreform's chief economist, Patrik-Ludwig Hantzsch, warned that Germany remains in a severe economic and structural crisis. Despite some positive indicators, companies are still grappling with low demand, rising operating costs, and ongoing uncertainty.
Hantzsch cautioned that the number of bankruptcies could increase further in the second half of the year, as the continued high level of insolvencies may trigger cascading effects throughout the economy. Germany has been mired in recession for two consecutive years, and prospects remain dim.
Although the country’s GDP grew slightly by 0.2% in the first quarter of 2025, the overall outlook remains bleak due to weak global demand and trade policy uncertainties. A recent survey by the Ifo economic institute showed that German exporters are increasingly pessimistic, particularly over fears of a trade conflict with the United States.
The U.S. was Germany’s largest trading partner in 2024, with trade in goods totaling €253 billion (approximately $280 billion). However, tensions escalated earlier this year when U.S. President Donald Trump imposed 20% tariffs on all EU goods, including 25% duties on steel, aluminum, and automobiles. While many of the tariffs were temporarily paused for 90 days to allow for negotiations with Brussels, key levies remain in effect.
Klaus Wohlrabe, head of Ifo’s business surveys, noted that the threat of U.S. tariffs still looms large. The resulting uncertainty has led to declining confidence among German exporters, with the Ifo export expectations index falling from -5.0 in May to -7.4 in June. The index measures manufacturers’ short-term outlook for foreign sales, and the drop reflects growing concern over trade disruptions.
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