Increase in Insolvencies Persists: Higher Number of Business and Consumer Bankruptcies in January Reported
Germany experienced a significant rise in both corporate and consumer insolvencies in November 2024, according to recent data. The number of corporate insolvencies increased by 18.1% compared to the same month the previous year, reaching 1,787 cases. This increase was particularly pronounced in the transport and logistics, construction, and hospitality sectors.
The prolonged recession, ongoing economic uncertainty, and structural challenges such as deindustrialization and policy-related uncertainties have been identified as key contributing factors to the corporate insolvencies. Economic weakness reduced earnings and cash flows for many companies, making it harder for them to service debts and remain solvent.
In contrast, the number of consumer insolvencies increased by 2.8% compared to the previous year, totaling 5,971 cases. This trend was not limited to the city and district of Offenbach, but was a national one. The specific sectors affected by the increase in consumer insolvencies were not provided.
The claims of creditors from corporate insolvencies in November 2024 amounted to around 2.8 billion euros, significantly more than in the previous year. The claims from consumer insolvencies in the same month were higher, totalling 1.5 billion euros.
The economic environment was more severe than during the 2009 financial crisis, with insolvencies reaching a 20-year high in mid-2025. Insolvencies rose significantly even in economically strong German states like Bavaria and Hesse, indicating broad-based distress.
Financial sector vulnerabilities and tightening credit conditions also contributed to the stress faced by firms, limiting their access to liquidity and credit. An erosion of Germany’s economic substance has been compounded by ongoing deindustrialization and the government’s strong interventionist policies focusing on green transformation and large infrastructure spending, which has not yet translated into immediate economic growth or stabilization.
Despite some economic optimism and forecasted recovery starting in 2026 due to expected growth from government infrastructure and defense investments, the immediate environment in late 2024 saw rising insolvencies driven by these macroeconomic and sector-specific challenges.
It is unclear whether the increase in consumer insolvencies in November 2024 was a continuation of a longer-term trend or a one-time event. The total claims of creditors from these consumer insolvencies were not specified in the article.
In summary, the sharp increase in corporate insolvencies in those sectors in November 2024 was primarily a consequence of the continued recession, structural economic changes, policy uncertainty, and worsening financial conditions for companies across Germany. The increase in consumer insolvencies was also a concern, but not as significant as the increase in corporate insolvencies.
What factors contributed to the rise in corporate insolvencies, as seen in the transport, logistics, construction, and hospitality sectors in Germany, during November 2024?
Financial sector vulnerabilities, tightening credit conditions, and ongoing deindustrialization, coupled with policy-related uncertainties and the economic impacts of the recession, played significant roles in the increased insolvencies for many businesses in Germany.
