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In 2025, Germany saw bankruptcies hit 20-year high


 

On average, there are 48 bankruptcies in Germany every day

 

The latest economic figures for Berlin are dramatic, revealing that 2025 saw more companies file for bankruptcy than at any point in the last two decades, all despite a promised economic turnaround from the Christian Democrat (CDU) government. 

 

The wave of insolvencies grew significantly toward the end of the year, affecting the lives of thousands of employees. According to the Leibniz Institute for Economic Research Halle, the annual total reached a historically high 17,604 bankruptcies. This translates to an average of 48 partnerships and corporations going out of business every day in Germany, according to Bild newspaper.

 

 

The latest economic figures for Berlin are dramatic, revealing that 2025 saw more companies file for bankruptcy than at any point in the last two decades, all despite a promised economic turnaround from the Christian Democrat (CDU) government. 

 

The wave of insolvencies grew significantly toward the end of the year, affecting the lives of thousands of employees. According to the Leibniz Institute for Economic Research Halle, the annual total reached a historically high 17,604 bankruptcies. This translates to an average of 48 partnerships and corporations going out of business every day in Germany, according to Bild newspaper.

 

“Even in the wake of the major financial crisis in 2009, the number was around 5 percent lower,” the institute explained.

 

December was particularly severe, with 1,519 insolvency applications filed. This figure was 75 percent higher than the average for December between 2016 and 2019, prior to the pandemic. 

 

Jonas Eckhardt, an economic expert from the transformation consultancy Falkensteg, told Bild that “the German economy is no longer just struggling with headaches. She’s got a fever. That won’t change anytime soon.“

 


‘Almost every German city is now on the verge of bankruptcy’ 

 

Germany’s cities are on the verge of a massive financial crisis, with the mayor of Essen warning that the data shows that almost every single city in the country is nearly bankrupt. Currently, the total deficit for all German cities in 2025 is €30 billion, which jumped from last year’s deficit of €24 billion. Essen’s Continue reading

 
 


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