<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>Corporate bankruptcy in Germany has been on a long-run decline. Even before the recent double crisis of the pandemic and multiple cost shocks, bankruptcy figures were one-third lower than around the turn of the century but were larger and affected more mature firms. With the onset of the double crisis, bankruptcies plummeted further while the number of affected jobs rose initially. Government rescue programmes hindered the exit of many small unproductive firms. Since mid-2023, bankruptcies of registered firms are higher than before the pandemic. Due to the current recession and the need to repay government support, the number of bankruptcies will rise until the end of 2023 and likely beyond.</p>
</abstract>

Corporate bankruptcy in Germany has been on a long-run decline. Even before the recent double crisis of the pandemic and multiple cost shocks, bankruptcy figures were one-third lower than around the turn of the century but were larger and affected more mature firms. With the onset of the double crisis, bankruptcies plummeted further while the number of affected jobs rose initially. Government rescue programmes hindered the exit of many small unproductive firms. Since mid-2023, bankruptcies of registered firms are higher than before the pandemic. Due to the current recession and the need to repay government support, the number of bankruptcies will rise until the end of 2023 and likely beyond.

Corporate Bankruptcies in Germany

Wirtschaftsdienst

This work is licensed under the Creative Commons Attribution 4.0 International License.

Unternehmensinsolvenzen in Deutschland

Corporate bankruptcy in Germany has been on a long-run decline. Even before the recent double crisis of the pandemic and multiple cost shocks, bankruptcy...

Corporate Bankruptcies in Germany

Published Online: Nov 24, 2023

Page range: 788 - 790

DOI: https://doi.org/10.2478/wd-2023-0214

© 2023 Steffen Müller, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.