Insolvencies continue to decline in Germany
Insolvencies in Germany continued to decline in the first half of 2019. This is the result of a recent analysis by Creditreform. Compared to the same period last year, the number fell by 3.1 percent, from 56,050 to 54,300 cases. While the number of corporate and private insolvencies declined only slightly, the number of “other insolvencies” in particular dropped by seven percent. These include, among others, the insolvencies of former self-employed people. This means that the number of insolvencies reported in Germany has been declining for nine years now.
Reasons for the falling number include economic growth driven by private consumption and construction activities. The strong labor market also favors the decline in insolvencies: the number of people in employment reached a record 45 million at the beginning of this year. However, insolvency figures are not declining in all sectors: in the first half of the year, insolvencies increased both among small mid-sized enterprises with a turnover of up to 5 million euros and among micro-enterprises with a turnover of less than 100,000 euros. The number of company bankruptcies also rose slightly in the manufacturing sector (plus 1.4 percent).
(Image rights: istockphoto.com/Wicki58)
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