Number of insolvencies in Germany in the quarter was the highest since 2010

The number of insolvencies in Germany was higher in the third quarter of this year than in any quarter since 2010. The current downturn in the German economy is to blame, but also the lingering effects of the covid-19 pandemic, the Leibniz Institute for Economic Research in Halle (IWH) said in a report today.

Pandemic

At the time of the coronavirus pandemic, the number of insolvencies was kept artificially low by government support programmes. Many of the companies supported at the time are now struggling, said IWH head of insolvency research Steffen Müller.

In the third quarter of this year, 3,991 private and public companies went into insolvency. The figure was last higher in the second quarter of 2010, when 4,071 insolvencies were reported. At that time, the financial and economic crisis of 2008 and 2009 was still being felt, according to IWH.

Vulnerable properties

The large federal states of Bavaria and Baden-Württemberg in particular saw a significant increase in the number of bankruptcies. In terms of sector, companies involved in real estate and housing reported bankruptcies very frequently.

The German economy is the largest in Europe and many Czech companies depend on it. On Wednesday, the German government issued an updated economic outlook, according to which it no longer expects growth this year. Gross domestic product (GDP) will fall by 0.2 percent, it said. Last year, the German economy contracted by 0.3 percent and its performance was the weakest of any eurozone country.

source: ÄŒTK

author avatar
EditorialTeam
The Trader-Magazine.com EditorialTeam is a collective of certified financial analysts, active traders, and cryptocurrency experts. Our mission is to transform complex market data (forex, equities, indices) into accessible financial education. All content undergoes rigorous, multi-level fact-checking to ensure we deliver only accurate, objective information for your trading and investment decisions.

Top 10 financial instruments for 2022. What will their prospects be in 2023?

The year 2022 has brought countless surprises and obstacles...

Telegram scams: how they work and how to protect yourself

Telegram has become one of the most widely used...

Trump Saved TikTok from a Ban. The App in the U.S. Moves into American Hands

TikTok narrowly avoided a ban in the United States...

Gulf Brokers Ltd. Review

Comparing spreads, commissions, trading platforms, rules and reading dozens...

Climate Change Poses Major Risks to Financial Markets, Regulator Warns

WASHINGTON — A top financial regulator is opening a...

AI Boom Beyond Nvidia stock: Which Lesser-Known Equities Are Riding the Wave?

For many investors, Nvidia stock has become almost synonymous with the...

FT: EU plans to remove barriers for banks’ cross-border capital flows

The European Union plans to remove barriers for banks...

Why find a credit card with a lower APR?

Credit cards can be useful financial tools. They make...

SpaceX on Wall Street: a historic IPO and the first trading days

The SpaceX listing ranked among the largest IPOs in history, raising $85.7 billion. Massive investor demand expanded the capital that the company will now use to finance its next phase of development.

CD Ladder Calculator: How to Build a Smarter Savings Strategy

A CD ladder calculator can help savers plan how to earn...
spot_img

spot_imgspot_img