German corporate insolvencies hit 20-year high, analysis shows

Corporate insolvencies in Germany rose last year to their highest level in two decades, according to data published on Thursday by a leading economic research institute.

The number of bankruptcies increased sharply in December, standing 75% above the average level for the month in the years 2016 to 2019, before the Covid-19 pandemic, the analysis showed.

A total of 1,519 insolvencies were recorded in December alone, the Halle Institute for Economic Research (IWH) said.

For the full year 2025, insolvencies reached 17,604 cases, around 5% higher than during the global financial crisis in 2009, according to the institute.

The elevated insolvency levels can no longer be explained solely by knock-on effects from the pandemic or by monetary policy, said Steffen Müller, head of insolvency research at the IWH. Instead, they increasingly reflect the current economic challenges facing Germany, he said.

Germany’s economy contracted in 2023 and 2024, while growth was forecast to be minimal last year, with no meaningful recovery expected in 2026.