MNI BRIEF: German Insolvency Trend Continues - IWH Study

The number of German firms going bust fell slightly in June, despite quarterly figures showing a record rise, new data published by the Leibniz Institute for Economic Research Halle (IWH) shows, as the economy continues to adjust to higher interest rates and the removal of Covid-era support measures.

Some 1420 firms and partnerships were declared insolvent last month - 4% fewer than in May, but 23% more than in June 2024. The number of jobs lost at the largest 10% of companies affected was stable at around 16,000, but was still up 68% on last year’s figure.

A total of 4,524 enterprises collapsed in Q2 2025 - an increase of 7% on the previous quarter, and the highest number recorded since Q3 2005 - with some 45,000 jobs lost. Industry was the worst affected sector, with firms in Bavaria, Hesse and Baden-Wuerttemberg hit hardest.