MNI BRIEF: German Insolvency Rates Stuck At High Level -IWH

The number of German firms going bust rose to 1,481 in September, an increase of 5% on the previous month and 14% on a year ago, according to the latest Leibniz Institute for Economic Research Halle (IWH) Insolvency Trend report, with around 20,000 jobs lost at the largest 10% of affected companies.

Insolvency figures are expected to consolidate at a high level over the coming months, IWH’s Steffen Mueller said, due to prolonged macroeconomic problems and the knock-on effects of low interest rate policy and coronavirus government aid.

“However, the upward trend is not ending because economic conditions have improved, but because the catch-up effects are losing momentum,” he added.