Germany sees surge in company insolvencies

A total of 187,744 German companies filed for insolvency last year, the highest number in nearly 20 years, providing further evidence of how difficult economic conditions and an aging population are affecting Europe's largest economy, according to an analysis published Tuesday by credit agency Creditreform and economic research institute ZEW, DPA reports.

The last time Germany recorded more corporate insolvencies was in 2007, when nearly 208,000 companies went out of business, CE Report quotes AGERPRES.

Compared with 2024, the number of insolvencies increased by almost 10 percent last year. In addition, 2025 was the second consecutive year to record a significant rise in corporate insolvencies.

“The dynamics of the crisis are now making their way through the entire economy. Unlike in previous years, businesses that were actually healthy are now also shutting down,” said Patrik-Ludwig Hantzsch, head of economic research at Creditreform.

The analysis published Tuesday shows that insolvencies increased in almost all sectors during 2025. The strongest trend was recorded in the hospitality sector, with around 15,000 restaurants and accommodation businesses closing in 2025, 15 percent more than in 2024.

Experts also highlighted that the negative trend seen for around 10 years in the healthcare sector continued. The number of closures, at nearly 11,000, was approximately double the figure recorded in 2008. Almost 5,500 medical practices closed last year, 23 percent more than in 2024, often because doctors retired and could not find anyone to take over their practices.

Meanwhile, around 11,000 industrial companies filed for insolvency in 2025, 10 percent more than a year earlier.

In addition to economic difficulties, insolvencies are also being driven by factors such as a shortage of skilled workers, high costs and a lack of successors.

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