German Corporate Bankruptcies Hit Highest Level Since 2005

Nearly 5,000 corporate bankruptcies were recorded in Germany in the second quarter of 2026, marking the highest figure for the period since 2005, according to a study by the Halle Institute for Economic Research (IWH) released on Thursday. In the second quarter of 2026, 4,996 bankruptcies were recorded among partnerships and public companies, a 9 per cent increase compared to the first quarter. This is the highest figure for a second quarter since 2005, when 5,295 cases were recorded. The report added that the wave of bankruptcies hit companies in almost all major sectors, including construction, trade, and the hospitality industry. In June 2026, the number of bankruptcies surged by 20 per cent year-on-year, reaching 1,702 cases. This figure also exceeded the average for June in the pre-pandemic period (2016 to 2019) by 80 per cent. ‘The situation is serious: bankruptcies are affecting the economy across the board. Many sectors and regions are suffering. In the third quarter, we must prepare for a higher increase in bankruptcies compared to last year,’ said IWH Head of Insolvency Research Steffen Mueller. The first quarter of 2026 had already set a record for the highest number of bankruptcies for the first time in 21 years. In August 2025, the Federal Statistical Office of Germany (Destatis) reported a rise in bankruptcy cases, with the highest filings coming from the transport and warehousing sector, followed by construction and hospitality businesses. Germany has experienced overall economic stagnation for three consecutive years, burdened by an economic downturn triggered by various factors, including high energy prices following the halt of gas supplies from Russia.