Business bankruptcies in Germany reach highest level in 20 years.

VTV.vn - According to IWH, the current wave of bankruptcies can no longer be explained simply by the impacts of the COVID-19 pandemic or the prolonged period of low interest rate policies.

Workers at an automobile factory in Zwickau, Germany. (Photo: AFP/VNA)

On January 8th, the Halle Institute for Economic Research (IWH) in Germany published a report showing that the number of bankruptcies in Germany in 2025 reached its highest level in 20 years, with a total of 17,604 cases involving partnerships and joint-stock companies.

Even during the 2009 global financial crisis, the number of bankruptcies was about 5% lower than it is now. Over 170,000 jobs were affected, a particularly worrying figure. In 2025 alone, the manufacturing sector will be hit hardest, with approximately 62,000 jobs lost, a level similar to the previous year.

According to IWH, the current wave of bankruptcies can no longer be explained simply by the effects of the COVID-19 pandemic or the prolonged period of low interest rates. Steffen Müller, Head of Bankruptcy Research at IWH, said that these figures increasingly reflect the structural difficulties of the German economy amid weak growth.

Previously, very low interest rates coupled with large-scale government support packages helped curb the wave of bankruptcies for many years. Although the increase in interest rates and the end of subsidies from 2022 triggered a "catch-up" effect, this effect appears to have diminished since then.

Mr. Müller also emphasized that bankruptcy is a normal phenomenon in a market economy, reflecting a necessary adjustment process and creating room for businesses capable of survival and growth.

The upward trend in bankruptcies continued until recently. According to the IWH, in December 2025 alone, Germany recorded 1,519 bankruptcies of partnerships and joint-stock companies, a 17% increase compared to November and 14% higher than the same period in 2024. This figure is also 75% higher than the average for December in the period 2016–2019, the period before the COVID-19 pandemic.

Source: https://vtv.vn/doanh-nghiep-pha-san-tai-duc-cao-nhat-20-nam-100260109053717477.htm