Survey: 8% of German companies in 'critical situation'

Around 8% of German companies believe they are in a critical situation, a survey by the Munich-based ifo Institute found on Friday.

The proportion of German firms fearing for their existence has risen from 7.3% in October last year to 8.1% in the same month of 2025.

"The number of corporate insolvencies is therefore likely to remain high in the coming months," said survey director Klaus Wohlrabe.

Companies across all sectors see a lack of orders as the greatest threat, followed by increased operating and personnel costs and bureaucracy.

According to the institute, the retail sector has been particularly hard hit, with 15% of respondents admitting to profound economic problems.

The situation in industry has improved slightly since October 2024, with a decline in the proportion of firms reporting a critical situation from 8.6% to 8.1%.

Construction companies are also less pessimistic in view of the upturn in activity, with 6.3% of firms fearing for their existence compared to 7.9% in the previous year.

The ifo Institute surveys several thousand companies every month for its economic surveys.