German Corporate Bankruptcies Hit Highest Level Since 2005

Moscow (ANTARA) - Nearly 5,000 corporate insolvencies were recorded in Germany in the second quarter of 2026.

The figure is the highest for that 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 insolvencies were recorded in Germany among partnership companies and public companies, an increase of 9 per cent compared with the first quarter. This is the highest figure for a second quarter since 2005, when 5,295 bankruptcy cases were recorded,” the study wrote.

The report added that the wave of insolvencies has struck companies in almost all major sectors, including construction, trade and the hospitality industry.

Earlier, in June 2026, the number of insolvencies surged by 20 per cent compared with the same period last year (year-on-year), reaching 1,702 cases.

That figure also exceeded the average for June in the pre-pandemic period (2016 to 2019) by 80 per cent.

“The situation is serious: insolvencies are affecting the economy across the board. Many sectors and regions are suffering. In the third quarter (July to the end of September), we must prepare ourselves for a higher number of insolvencies than last year,” said IWH’s Head of Insolvency Research, Steffen Mueller, as quoted in the document.

Previously, the first quarter of 2026 had also recorded the highest number of insolvencies for the first time in 21 years.

In August 2025, Germany’s Federal Statistical Office (Destatis) reported a rise in bankruptcy cases, with the most filings coming from the transport and warehousing sector, followed by construction and the hospitality business.

Germany itself has experienced overall economic stagnation for three consecutive years.

The country’s economy has been weighed down by an economic downturn triggered by various factors, one of which is high energy prices following the halt of gas supplies from Russia.

Source: Sputnik/RIA Novosti