Company bankruptcy in Germany puts 200,000 jobs at risk

More than 200,000 jobs in Germany may be at risk of corporate bankruptcy this year, as business failures are expected to reach their highest level in 14 years, said credit provider Allianz Trade.

Allianz Trade, a subsidiary of the security giant Allianz, published the assessment as part of a perspective on international bankruptcy.

The figure is an extract based on available data.

“Even now, the conflict in the Middle East is having a clear impact on Germany, and the US trade struggle is far from over”, Milo Bogaerts, the leader of Allianz Trade in Germany, Austria and Switzerland, records Telegrafi.

In Germany, the credit provider expects the number of bankruptcyes to increase by 2.4% year-on-year to 24,650 cases.

This would be the highest level in 14 years”, Bogaerts said.

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

In general, Allianz Trade expects corporate bankruptcy at the international level to rise by 6%, meaning stronger than in Germany.

Experts had revised the forecast up because of the Iran war.

The conflict is increasing pressure on sectors requiring a lot of energy, such as transportation, chemicals and metals, said company executive director Aylin Somersan Coqui.

Next year, Allianz Trade expects the trend in Germany to be reversed, with bankruptcy forecasted to drop by 2% to 24,150 cases.

The provider expects pressures related to war to ease and economic measures to boost the economy. /Telegraph/