Surge in German Business Bankruptcies: July Sees 10-Year High \ stacker news ~econ

The number of insolvencies among German personal and corporate entities surged in July, reaching levels unseen in a decade, according to the Leibniz Institute for Economic Research (IWH). This spike, particularly pronounced in the manufacturing sector, saw 1,406 insolvencies—a figure surpassing even the peak in April 2024.

The 20% month-over-month increase represents a 37% rise compared to July 2023 and a striking 46% above the pre-pandemic July average from 2016 to 2019. The July uptick exceeded IWH's earlier forecasts, partially due to the high number of working days.

All sectors experienced a rise in bankruptcies, with manufacturing hit hardest. From 100 insolvencies in June, the number climbed to 145 in July, marking a new record since the IWH began sector-specific tracking in January 2020.

In the end, the bubble economy, which was built on the illusion of eternally negative real interest rates, cannot shoulder even the smallest increases in interest rates. The dream of the green transformation agenda has been shattered! The reality for Germany and the eurozone is only just beginning.

60 sats \ 1 reply \ @Coinsreporter 8 Aug

I agree that the great green German agenda is shattered. It would be very interesting to see how all these 1000s of insolvent companies and the people who are now jobless react to it. I foresee they will raise their voices within this year as we're heading towards a global recession.

0 sats \ 0 replies \ @TomK OP 8 Aug

Watch UK...

47 sats \ 0 replies \ @Silent_Hodler 8 Aug

Germany is on the way down. Like the whole EU. There's no progress. They have to sell their used electric cars to some country (Poland IIRC). Crazy how bad there is now in Germany.

47 sats \ 0 replies \ @Satosora 8 Aug

Wow, as we approach the next year, we will see even more. But its not just going to be Germany, think France, Italy, Spain, Greece and the UK. The music is about to stop.