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| Data from the Leibniz Institute for Economic Research in Halle |
Data from the Leibniz Institute for Economic Research in Halle (IWH) showed that around 5,000 German companies went bankrupt between April and June 2026, the highest rate for the second quarter in 21 years.
The institute stated in a statement that Germany recorded approximately 4,996 bankruptcies among partnerships and joint-stock companies in the second quarter of 2026, an increase of 9% compared to the first quarter, which is the highest rate for the second quarter since 2005, when 5,295 bankruptcies were recorded.
Bankruptcies have affected companies in most major sectors, including construction, trade and hospitality, at record levels.
The number of bankruptcies in June 2026 alone reached 1,702, an increase of 20% compared to June 2025, and 80% compared to the average for the same month during the period from 2016 to 2019, i.e., before the start of the Corona pandemic.
Steffen Müller, head of the bankruptcy research department at the institute, said the situation is extremely difficult, as the wave of bankruptcies is affecting the economy on several fronts, impacting many sectors and regions. He predicted that the third quarter (July to the end of September) would see a further increase in the number of bankruptcies compared to last year.
He noted that the rate for the first quarter of this year was the highest among the rates for the period from January to the end of March over the past 21 years.
Volker Treier, chief analyst at the German Chamber of Commerce and Industry, had previously stated that a German company was declaring bankruptcy every 20 minutes during 2025.
According to the German Federal Statistical Office (Destatis), the number of bankruptcies has been rising for several years, with the rate increasing by 22.4% in 2024 compared to 2023, after having increased by 22.1% in 2023 compared to 2022.
