MNI BRIEF: Slowdown in German Insolvencies Short-Lived - IWH

The number of German firms that went bust rose by 5% in October to 1,553, analysis by the Leibniz Institute for Economic Research Halle (IWH) published on Tuesday showed, but a “notable” decline by the end of the year will likely be only temporary.

Although some 13,000 jobs were lost at the largest 10% of firms declared bankrupt or insolvent last month, this was 36% fewer than in September, and just below the figures for the same month in 2024, the survey showed. Around 3,700 of those were in industry, with the majority in retail.

“Our leading indicators suggest a noticeable decline in insolvency figures for November and December,” IWH’s Steffen Mueller said. However, this does not indicate a lasting trend, he added, with figures seen rising again in January. (see MNI INTERVIEW: German Fiscal Boost Impact Limited - Bofinger )