German business closures near 20-year high as 'crisis dynamic' spreads

Germany saw 187,744 businesses close last year, the highest number in almost 20 years, according to a joint annual analysis by credit agency Creditreform and the Leibniz Centre for European Economic Research (ZEW) released on Tuesday.

Compared with the previous year, the number rose by nearly 10%. The last time more business closures were recorded nationwide was in 2007, with almost 208,000. Last year marked the second consecutive increase.

"The crisis dynamic is now eating its way through the entire breadth of the economy," said Patrik-Ludwig Hantzsch, head of Creditreform's economic research. "Unlike in previous years, businesses that were actually healthy are now also ceasing operations."

The analysis found that closure figures rose across almost all sectors within the year. The trend was strongest in the hospitality sector, with around 15,000 restaurants and accommodation businesses closing in 2025 - 15% more than in 2024.

The negative trend observed for around 10 years in the health care sector also continued, according to the experts. The number of closures, at nearly 11,000, was roughly double the figure recorded in 2008. Nearly 5,500 doctors' offices closed last year - 23% more than in 2024 - often because doctors are retiring and cannot find anyone to take over their practice.

Around 11,000 industrial businesses were also affected, 10% more than a year earlier.