Germany is experiencing its highest number of bankruptcies since 2014, with experts warning that the peak of the crisis “has not yet been reached.”
According to the credit rating agency Creditreform, approximately 23,900 companies will have filed for bankruptcy by the end of the year—an increase of 8% compared to last year.
In 2014, official data recorded 24,100 business closures. “We have not reached the peak yet,” said Creditreform CEO Bernd Butow in an interview with Germany’s public broadcaster ARD. He added that creditworthiness is steadily declining across many sectors, while an increasing number of private individuals are also being forced into insolvency. Patrick-Ludwig Hantz of Creditreform noted that consumer bankruptcies are “certain to rise,” estimating total losses from insolvency cases this year at €57 billion, with around 285,000 jobs lost or at risk.
Causes of the economic downturn
Analysts attribute the deteriorating economic situation to collapsing foreign markets, high energy costs hindering the competitiveness of German industrial exports, U.S. tariffs, and growing competition from China. “There is nothing more important for value creation than industry,” Hantz said, noting that “Germany’s economic engine is under immense pressure,” with declining domestic demand and rising unemployment. He predicted a “strong wave of bankruptcies” across the economy. Four out of five companies that fail employ fewer than 10 workers, though dozens of larger firms also shut down in 2025.
Some of the largest bankruptcies this year include healthcare companies, which despite stable demand face soaring operating costs and limited access to financing. Highly specialized companies and even previously “bulletproof business models,” such as the automotive sector, are also under pressure. Hantz warned that long-term gaps may emerge in key areas of expertise, gaps that “cannot be filled with money or goodwill.”
Overall, about 130,000 bankruptcies are expected this year—24,000 corporate and 76,000 personal. The remaining 30,000 involve self-employed individuals or people linked to insolvent businesses who have themselves become unable to meet their financial obligations.
