Corporate insolvencies in Germany will reach a record level in 2025

In 2025, corporate insolvencies in Germany reached a new high since 2005. The manufacturing sector was particularly affected. Early indicators also point to high insolvency figures for the first quarter of 2026.

In 2025, Germany recorded the highest number of company insolvencies in 20 years. According to a recent analysis of Leibniz Institute for Economic Research Halle (IWH) The number of insolvencies of partnerships and corporations rose significantly again in December 2025. In 2025 as a whole, there were more company bankruptcies than in any year since 2005. This development is accompanied by substantial and lasting income and wage losses for the affected employees.

In December 2025, the IWH registered 1.519 insolvencies of partnerships and corporations. This represents an increase of 17 percent compared to the previous month, 14 percent compared to December 2024, and 75 percent compared to the average December of the years 2016 to 2019.

Number of affected jobs and industries

The largest ten percent of insolvent companies were More than 15.000 jobs affected in DecemberThis is more than two-thirds above the previous month's figure, slightly below the level of December 2024 and 70 percent higher than the average of the pre-corona years 2016 to 2019.

According to IWH, a total of [unclear] were produced in Germany in the year 2025. 17.604 insolvencies of partnerships and corporations were recorded. – the highest figure in 20 years. By comparison, in 2009, the year of the major financial crisis, the number was around five percent lower. Approximately 170.000 jobs were affected by bankruptcies last year.As in 2024, the largest share of jobs affected by insolvencies in 2025 was in the manufacturing sector, with around 62.000 jobs.

Current causes and outlook

According to the head of insolvency research at IWH, Steffen MuellerThe currently high insolvency figures can no longer be explained by catch-up effects from the Corona pandemic and years of low interest rate policies. "By now, however, these catch-up effects are likely to have lost momentum." The currently high insolvency figures increasingly reflect the present economic challenges in Germany."," Müller explains. However, bankruptcies are also a normal part of the market economy, as they lead to market consolidation and create space for future-proof companies.

Early indicators continue to point to very high insolvency figures for the first quarter of 2026. The IWH analyzes Monthly updated insolvency announcements The IWH Insolvency Trend uses data from German commercial registers and links it to the key financial figures of the companies concerned. The results of the IWH Insolvency Trend differ only slightly from the official figures, which are published approximately two months later.

Methodology and comparison to official statistics
The IWH insolvency trend is considered a reliable leading indicator for insolvency activity and economic development in Germany. The reported insolvencies of partnerships and corporations typically cover more than 90 percent of the jobs affected and 95 percent of the claims. Official statistics, on the other hand, include all standard insolvencies, including micro-enterprises and certain individuals, whose economic significance, however, is minor.

The Leibniz Institute for Economic Research Halle, located in Halle (Saale), is one of the leading institutions in the field of insolvency research. Further information and methodology can be found at [website address]. iwh-halle.de/insolvency research.

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