Reuters: Corporate Bankruptcy Rate in Germany Rises 2.4% in June
Reuters, July 11 report: The German Federal Statistics Office released preliminary data on Friday showing that the number of registered corporate bankruptcies in Germany increased by 2.4% compared to the same period last year in June this year. The agency cited final data from April, stating that the number of bankruptcies increased by a higher rate of 11.5% in that month, highlighting the ongoing pressure on German businesses.
The German Federal Statistics Office said that these bankruptcy registrations mostly originated from procedures initiated within the previous three months. Notably, although the number of bankruptcies increased significantly in April, the total amount of claims reported by creditors fell sharply from 11.4 billion euros in April 2024 to 2.5 billion euros (approximately 2.9 billion U.S. dollars). The office analyzed that this reflects the current situation where most bankruptcies involve small and medium-sized enterprises, lacking large-scale corporate failures compared to the same period last year. The data exacerbates the challenges facing the German economy, putting pressure on the newly appointed government, which urgently needs to take measures to revitalize economic growth. An economic statistician involved in compiling the data stated, "The consecutive two-month year-on-year increase confirms the difficulties faced by businesses, especially for small and medium-sized enterprises under the background of energy transition and weak global demand. The new German government needs to present concrete structural reform plans."
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