Significant surge observed in insolvency cases during April
In April 2025, Germany saw a 0.8% increase in consumer insolvencies compared to the same period last year, amounting to 6,238 cases, according to the latest statistics released by the statistical office. The claims of creditors for these insolvencies were valued at 2.5 billion euros.
Meanwhile, the number of company insolvencies increased significantly in April compared to the same month last year, with 2,125 company insolvencies reported. This figure, however, represents a decrease compared to the number of claims made in the same month of the previous year.
The transport and logistics sector had the most cases of company insolvencies in April 2025, followed by the construction and hospitality sectors. The statistical office reported 6.1 company insolvencies per 10,000 companies in April 2025.
DIHK chief Volker Treier stated that the wave of company insolvencies continues to grow. He pointed to weak demand and slumping global export sales as major factors contributing to the increase in company insolvencies in Germany. The country's economy, heavily reliant on manufacturing and exports, has been hit hard by declining orders and reduced international demand, which has shrunk export revenue and put considerable strain on key industrial sectors.
Rising operational costs, particularly due to price surges in inputs and energy, have also squeezed profit margins and depleted financial reserves, contributing to the increase in insolvencies. Germany is described as being in a "deep economic and structural crisis," where persistent uncertainty—exacerbated by trade policy disruptions and lack of clear recovery prospects—has undermined business confidence and lending conditions. Loans are harder to obtain, and firms increasingly operate with dwindling financial buffers.
The ongoing recession, with only very fragile GDP growth of 0.2% in early 2025, has limited the capacity for economic recovery and business stabilization. Sector-specific problems, such as those affecting the industrial sector, including automotive, chemicals, steel, and manufacturing, as well as the services sector (notably catering and hospitality) and retail, have further exacerbated the situation. Prominent retail brands have filed for insolvency, reflecting widespread financial distress.
Insolvencies involve large-scale layoffs (over 141,000 jobs affected), which in turn depress consumer spending and increase financial pressure on households, further driving consumer insolvencies and creating negative feedback loops within the economy. The risk of continued insolvencies remains high throughout 2025 as meaningful economic momentum is not expected until government investment funds take effect in 2026.
The figures for June are a leading indicator, as the applications for regular insolvency are only included in the statistics after a decision by the competent court. The actual time of the insolvency application is approximately three months earlier in many cases. The statistical office expects an increase of 2.4% in company bankruptcies in June 2025 compared to June 2024.
[1] Source: German Institute for Economic Research (DIW) [2] Source: Federal Statistical Office (Destatis) [3] Source: German Trade Union Confederation (DGB)
- Concerns regarding the rising insolvencies in Germany have led to the review of community policy, especially those focusing on employment and business support, to address the financial hardships faced by companies.
- The finance industry is closely monitoring the impact of the ongoing insolvencies in various sectors, such as transport, construction, and hospitality, on the overall economic stability of Germany, potentially affecting employment policies to mitigate the consequences.
