Rise in insolvencies in Germany - A look at the figures from the Federal Statistical Office
The economy is a constant indicator of the state of a society, and figures from the Federal Statistical Office often provide insights into the dynamics and challenges facing companies. A recent report from the Federal Statistical Office has caused quite a stir: The number of regular insolvencies applied for in Germany rose by 18.8% in November 2023 compared to the same month last year.
Continuous increase since June 2023
The November figures are part of a trend. Since June 2023, Germany has consistently recorded double-digit growth rates in regular insolvencies compared to the same period of the previous year. In October 2023, the increase was even 22.4 % compared to October of the previous year. This development raises questions and requires a deeper analysis of the economic situation.
Behind the figures: Date of the insolvency application and proceedings
In order to interpret the figures correctly, it is important to know that insolvency applications are only included in the statistics after the first decision by the insolvency court. In many cases, the actual date of the insolvency application is almost three months earlier. This underlines the fact that the current figures may only represent the tip of the iceberg and that the actual number of companies facing economic challenges could be higher.
The insolvency statistics only take into account business closures that take place as part of insolvency proceedings. Other reasons for business closures or financial difficulties are not included in these statistics. This does not make the situation any less worrying, as the actual economic challenges may be more far-reaching.
Challenges and possible reasons for the increase
The question many people are asking is: why are we experiencing this sustained rise in regular insolvencies? The reasons could be many and varied, and a differentiated analysis is required. Factors such as economic uncertainty, rising costs, trade problems or the consequences of the global pandemic may play a role. It is important to identify the causes so that targeted measures can be taken.
Outlook and need for action
The current figures should be seen as a warning signal. They make it clear that companies in Germany are facing considerable challenges. It is crucial that governments, economic players and entrepreneurs work together to find solutions and take supportive measures. Early identification of risks, targeted support for companies in distress and the promotion of economic stability are crucial steps in reversing the trend.
Overall, it is time to closely monitor current developments and take constructive measures to stabilize the economic landscape and support companies in Germany. Only through a joint effort can we overcome the challenges and ensure a sustainable economic recovery.
