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Rising energy and material prices and weak demand triggered a wave of bankruptcies among large and medium-sized companies in Germany in the first half of this year, according to business newspaper Handelsblag. Citing an analysis by business restructuring consultancy Falkensteg, Handelsblag wrote that 162 companies with a turnover of more than 10 million euros filed for bankruptcy between January and June this year.
The figure was 41% higher than the same period last year, the newspaper said, noting that the increase was significantly higher than Falkensteg’s expectations, which had predicted a 30% increase at the beginning of the year. The largest number of requests came from the real estate industry, automotive suppliers and machinery manufacturers, according to Handelsblatt.
what is the reason?
The reasons for declaring bankruptcy include the post-epidemic crisis, inflation, rising energy and material prices, and weak demand. According to Handelsblatt, Halkensteg found that the global crisis, the poor economic outlook in Germany, and high interest rates hindered the restructuring and investment in bankrupt companies.
Germany’s chamber of commerce DIHK forecast in May that the number of bankruptcies would continue its upward trend, noting that the German economy was hampered by structural problems such as a lack of skilled labor.
According to the Destatis statistics office, 17,814 companies declared bankruptcy in 2023, an increase of 22.1% from 2022.
Daily News
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