A sharp increase in bankruptcy has been recorded in Germany. In October 2024, bankruptcy applications in the country increased by 22.9 percent compared to October last year, according to the Federal Statistical Office.
This trend has continued over the past few months, reports Bild.
Analysts predict that the number of corporate bankruptcies in Germany will exceed 20,000 in 2024.
Steffen Mueller, a professor at the Halle Institute for Economic Research, explains that the situation has become critical for many companies in Germany after they stopped state aid.
“We are seeing the effects of a prolonged economic downturn and rising costs. Companies that survived the period of low interest rates and government support during the pandemic are now under severe pressure,” Mueller said.
Germany’s transport and logistics sectors are the most affected by this crisis.
High bankruptcy rates are recorded also in the country’s hotel and restaurant business and construction.