Germany’s corporate insolvency rates exhibited a complex pattern in June, according to data released Tuesday by the Leibniz Institute for Economic Research Halle (IWH). While the number of insolvencies among partnerships and capital companies experienced a slight decrease, the overall picture reveals persistent challenges within the German economy.
The IWH’s insolvency trend indicates 1,420 insolvencies were recorded in June, a four percent decline from the previous month. However, this figure remains significantly elevated compared to June 2024, registering a 23 percent increase. Furthermore, it represents a substantial 50 percent increase compared to the average for Junes between 2016 and 2019, a period prior to the COVID-19 pandemic.
The impact on employment has also been considerable. In June, approximately 16,000 jobs were affected within the largest ten percent of insolvent companies. While this figure is consistent with previous months, it’s considerably higher than levels observed in June 2024 and the pre-pandemic average.
The second quarter of 2025 saw a record 4,524 partnerships and capital companies declared insolvent. This figure surpasses the record set in the first quarter of 2025 by seven percent. Representing the highest number of insolvencies since the third quarter of 2005, the figure even exceeds levels recorded in the aftermath of the major economic and financial crisis of 2009.
Despite a slight decrease compared to the previous quarter, approximately 45,000 jobs remain at risk within the largest ten percent of insolvent companies, maintaining a high level of concern regarding the broader economic impact.
