German insolvencies put 200,000 jobs at risk, insurer says

More than 200,000 jobs in Germany could be at risk from corporate insolvencies this year, as business failures are expected to reach their highest level in 14 years, credit insurer Allianz Trade said.

Allianz Trade, a subsidiary of insurance giant Allianz, published the estimate as part of an outlook on international insolvencies. The figure is an extrapolation based on available data.

"Even now, the Middle East conflict is having a clear impact on Germany, and the US trade war is far from over," said Milo Bogaerts, head of Allianz Trade in Germany, Austria and Switzerland.

In Germany, the credit insurer expects the number of insolvencies to rise by 2.4% year-on-year to 24,650 cases.

"That would be the highest level in 14 years," Bogaerts said.

According to Germany's Federal Statistical Office, local courts in Germany registered 24,064 cases last year, a sharp increase of 10.3%.

Overall, Allianz Trade expects corporate insolvencies internationally to rise by 6%, meaning more strongly than in Germany.

The experts had revised the forecast upward because of the Iran war. The conflict is increasing pressure on energy-intensive sectors such as transport, chemicals and metals, said company chief executive Aylin Somersan Coqui.

Next year, Allianz Trade expects the trend in Germany to reverse, with insolvencies forecast to fall by 2% to 24,150 cases. The insurer expects war-related pressures to ease and economic measures to boost the economy.