Status: 08.12.2022 1:01 p.m
According to the Leibniz Institute for Economic Research, November saw the highest number of company bankruptcies this year. In a long-term comparison, however, the numbers are still low, according to the researchers.
According to the Leibniz Institute for Economic Research Halle (IWH), the number of company bankruptcies in Germany reached its highest level in the current year in November. Accordingly, there were 808 bankruptcies of partnerships and corporations in the past month, as the institute announced.
In October there were only 722. At the same time, the November number is 23 percent above the level of the same month last year. However, the current numbers are still low in a long-term comparison, according to the researchers.
There is no wave of bankruptcies
The IWH analysis shows that a good 9,000 jobs were affected in the largest ten percent of companies whose bankruptcy was reported in November. The number is thus significantly higher than the level of the past twelve months.
So far, however, there has been no wave of bankruptcies. “So far, the insolvency figures have been developing more cautiously than many expected,” said IWH expert Steffen Müller. According to their own statements, the economic researchers had expected 900 bankruptcies in Germany in November.
Even with a view to the past, the insolvency situation is at a low level. According to official statistics, an average of 1,007 partnerships and corporations were reported insolvent in November between 2015 and 2019 – almost 200 more than now. For the next two months, Müller does not expect a drastic tightening either.
According to the IWH, the insolvency trend created by the researchers provides reliable findings on nationwide insolvency events much more quickly than the official statistics. For its analyses, the IWH evaluates the current insolvency notices from the German registry courts and links them to the balance sheet figures of the companies concerned.
High energy costs continue to cause uncertainty
High energy prices, scarce raw materials, supply chain problems, radical changes in consumer behavior and a shortage of workers are currently burdening companies in Germany. In addition to the prices of important production factors, wages and interest on loans are also rising due to inflation and the associated tighter monetary policy of the European Central Bank (ECB).
Several industry associations had recently warned of a wave of insolvencies due to the extreme increase in costs and called for government support. According to a survey by the industry association BDI from September, the high prices are a major challenge for 58 percent of companies, and for 34 percent it is a matter of livelihood.
According to the ZDH industry association, the economic situation is also coming to a head in the skilled trades. “In the trades, a wave of insolvencies is rolling towards us because of the energy crisis,” said ZDH President Hans Peter Wollseifer recently.