Number of German businesses bankruptcies expected to be highest in a decade

VTV.vn - The number of bankruptcies in Germany is expected to reach nearly 24,000 this year, an increase of 8.3% compared to last year and the highest level in a decade.

Workers work at a German factory. (Photo: Xinhua)

The number of German businesses going bankrupt this year is expected to be at its highest level in more than a decade, as the country's economy falls into a prolonged recession, a report by credit rating company Creditreform released on December 8 showed.

According to the report, around 23,900 companies are expected to file for bankruptcy in 2025, up 8.3% from 2024 and the highest number since 2014. Although the increase is slower than in previous years, the figure shows the deep challenges facing German businesses after two years of economic recession.

Many businesses are saddled with high debt levels, have difficulty finding new sources of finance and face structural obstacles such as energy prices or regulations, which puts enormous pressure on small and medium-sized enterprises, hindering many businesses, said Patrik-Ludwig Hantzsch, head of economic research at Creditreform.

The number of bankruptcies of small businesses, of which micro-businesses, with up to 10 employees, account for the largest share, 81.6%, will be higher in 2025 than in 2024. While the financial and employment losses are small in individual bankruptcies, the losses for creditors, including suppliers and banks, are significant. Creditreform expects losses from bankruptcies to be around 57 billion euros ($66.41 billion) in 2025, compared with 59.1 billion euros in 2024. On average, the financial loss per case will be over 2 million euros.

The German government plans to invest in infrastructure and defense to stimulate growth. However, Mr. Bernd Buetow, CEO of Creditreform, said that the German economy is losing competitiveness, due to high costs, cumbersome administrative procedures and the current weak economic situation will continue to cause businesses to default.

Source: https://vtv.vn/so-doanh-nghiep-duc-pha-san-du-kien-cao-nhat-mot-thap-ky-100251209101526117.htm