Status: 04/19/2023 11:27 a.m
Companies are burdened by high energy costs and rising interest rates. This leads to a growing number of bankruptcy filings. The construction industry and trade are particularly affected.
In view of the economic slump and rising interest costs, there are signs of an increase in company bankruptcies in Germany. The number of standard insolvency proceedings applied for in March was 13.2 percent higher than in the previous month. This was announced today by the Federal Statistical Office. Already in February there was an increase of 10.8 percent.
This statistic only records business closures that take place as part of insolvency proceedings – and not those for other reasons or before acute payment difficulties occur.
State aid prevented wave of bankruptcies
Despite the corona and energy crisis, a historically low number of company bankruptcies was recorded in 2020, 2021 and 2022. The reasons for this were the extensive state aid such as the partial suspension of the obligation to file for insolvency, the expansion of short-time work benefits, financial support for companies and a freeze on enforcement by the tax authorities and health insurance companies.
However, there are now signs of a trend reversal. Higher production costs, rising personnel expenses and a significant rise in interest rates are worsening the financial situation of many companies. Experts therefore expect an increase in company bankruptcies in Germany. The credit insurer Allianz Trade expects an increase of 15 percent this year.
Most bankruptcies under construction
In January, the number of company insolvencies filed with the district courts was 1,271, according to the statistics office. This corresponds to an increase of 20.2 percent compared to the previous year. In December, the increase was 19.7 percent.
At the beginning of the year, most corporate insolvencies were recorded in the construction industry, namely 246 cases (up 19.4 percent). This was followed by trade (including the maintenance and repair of motor vehicles) with 204 procedures (up 27.5 percent).
The statistics office pointed out that the figures only take into account procedures after the first decision of the bankruptcy court. “In many cases, the actual time of filing for bankruptcy is almost three months before that,” the authority said.