Company bankruptcies in Germany at the highest level of the year

The Halle Institute for Economic Research (IWH) in Germany has released its report on company bankruptcy trains in the country for November.

Consequently, bankruptcy filings of companies and partnerships in Germany increased by 23 percent compared to November 2021, reaching 808. (IWH) reported that the number of bankrupt companies in the country reached the highest level of this year in November.

In the statement, it was noted that the Institute reported 722 bankruptcy filings a month ago in October, and the highest monthly data of the year was reached in November.

AVERAGE 1007 BANKRUPTCY COMPANIES IN NOVEMBER

However, according to official statistics, an average of 1,007 companies and companies went bankrupt in November between 2015 and 2019.

Steffen Müller, Head of Structural Change and Efficiency at IWH, said in his assessment of the problem that bankruptcies have played out more cautiously than many had hitherto expected.

ENERGY COSTS AND THE CHALLENGE OF STRONG MONETARY POLICY

While the war between Russia and Ukraine has led to higher energy costs in Germany, which has Europe’s largest economy, disruptions to international supply chains are making many imported intermediate goods more expensive to produce at home.

The energy crisis, material shortages and high inflation have plagued the German economy for months, after the Covid-19 crisis caused significant job losses in many industries.

The tightening of the monetary policy of the European Central Bank (ECB) also increases the financing costs of German companies. (AA)