17 minutes agoDW: Germany's bankruptcy wave - economic alert?
Periskopi(an hour ago)
(an hour ago)What is the true state of the German economy? The number of bankruptcys is often used as an indication. And even here, the headlines are disturbing.
In June, for example, the rate of bankruptcy for partnership societies and limited - responsibilities in Germany was 80 percent higher than the June average between 2016 and 2019 B.C. This appears in a study by the Liebniz Institute for Economic Research in Halle (IWH).
One-person enterprises, cheap professions and small businesses are not included in these figures, as they are not important to the labour market. Associations with partnerships and stock societies account for 90 percent of the jobs affected by bankruptcy and 95 percent of the claims involved.
According to Stephen Müller, the director of research on bankruptcy in IWH, it is said that the number of business defaults in the second quarter of 2026 has reached the highest level in twenty years, a development that is not surprising, as an increasing number of businesses have already entered bankruptcy over the last quarter.
The German economy has been in trouble for years, and even the recovery initially predicted for this year is expected to bring only modest growth. This prediction coincides with reports by companies that are reducing the number of jobs to a large extent. Volkswagen, for example, has shown that 100,000 jobs could be lost in the years to come. Automotive components producer ZF plans to reduce 14,000 jobs by 2028. Even in Bosch, more than 20,000 jobs are expected to be removed in Germany by 2030. The automotive sector is not the only one suffering.
After losing more than 100,000 jobs in the industry last year, up to 100,000 other jobs are expected to be lost by 2026, not only among car producers but also in mechanical engineering and construction, according to a study by the consulting firm Horváth.
