Germany Records Highest Corporate Insolvencies in Two Decades

By Staff, Agencies

Germany recorded its highest number of corporate bankruptcies in more than two decades during the second quarter of 2026, with nearly 5,000 companies filing for insolvency as economic pressures continued to mount across multiple sectors.

According to the Halle Institute for Economic Research (IWH), 4,996 companies filed for insolvency between April and June, a 9% increase from the previous quarter and the highest second-quarter total since 2005.

The rise affected nearly all major sectors of the economy, including construction, real estate, trade, hospitality, and services, putting approximately 45,500 jobs at risk.

In June alone, 1,702 companies declared insolvency, representing a 20% increase compared with the same month last year and an 80% rise above the pre-pandemic average.

Steffen Müller, head of insolvency research at the IWH, said corporate failures remain at an “exceptionally high level,” warning that the economic difficulties are affecting industries and regions across the country simultaneously.

The institute expects insolvencies to remain above last year's levels during the third quarter.

Germany's economy has faced sustained pressure from elevated energy costs following its decision to phase out Russian oil and gas imports after the escalation of the Ukraine conflict in 2022.

Those challenges have been compounded by a recent surge in global crude oil prices linked to the US, “Israeli” war on Iran, further increasing costs for Europe's largest economy.

Germany's economy contracted in both 2023 and 2024, marking its first consecutive annual decline in more than two decades.

Current forecasts project economic growth of just 0.5% this year, while official data shows corporate insolvencies have increased by more than 22% in both 2023 and 2024.