Market report: More bankruptcies, but also more start-ups in Germany

The number of company bankruptcies in Germany continues to increase. In August, according to the Federal Statistical Office (Destatis), the local courts registered a total of 2,067 filed corporate insolvencies. That was 4.4 percent more than in the same month last year.

From January to August, according to the current Destatis figures, registered insolvencies totaled 17,252 - an increase of 6.6 percent compared to the same period last year. Companies in the transport and warehousing, hospitality and construction sectors were most frequently affected.

“The record wave of corporate insolvencies is not slowing down,” comments Marc Evers, medium-sized business expert at the German Chamber of Commerce and Industry (DIHK). "This is the next sad record."

Even the current slight economic upturn cannot stop the development: "The structural effects of years of crises and stagnation are too deep. The financial reserves of many companies have been used up. At the same time, the persistently high cost pressure leaves many companies with little room for investment and growth."

For the whole of 2026, the DIHK expects around 26,000 corporate insolvencies. “That would be an average of more than 70 bankruptcies per day and the highest annual level since 2012,” says Evers.

Politics is now called upon, said Evers: "Economic policy now has the power to create the conditions for a substantial upswing." The medium-sized business expert repeats well-known demands: Companies need noticeable relief in labor and energy costs, less bureaucracy and reliable framework conditions for investments: "Only when companies can invest and grow on their own again will the wave of insolvencies come to an end," Evers is convinced.

However, the professional association of insolvency administrators and trustees in Germany (VID) does not see a widespread wave of insolvencies. VID boss Christoph Niering: "Insolvencies like those at Varta with more than 3,000 employees or at Galeria with around 12,000 employees are isolated events that also influence the statistics." However, certain sectors would have a difficult time given the structural change, such as automotive suppliers who had concentrated their business on combustion engines.

What is interesting is that the Federal Statistical Office not only reports more bankruptcies, but also more companies being founded. According to statisticians, around 103,700 larger companies were founded between January and September of this year. The Federal Office includes companies whose legal form and number of employees indicate greater economic importance. Compared to the same period last year, there was an increase of 4.5 percent.

Although it is encouraging that more people are taking the step into self-employment, it is not just an entrepreneurial spirit, says DIHK expert Evers: "Many are looking for a career alternative because the prospects on the job market have become more uncertain." Nevertheless, Evers sees great opportunities for founders, for example in the area of ​​artificial intelligence.

After reaching a new all-time high on Thursday, the German stock index (DAX) is taking a break at the end of the trading week. The German stock market barometer hovers around its closing price from the previous day at midday.

The day before, the DAX had surpassed the 27,000 point mark for the first time, but then lost some ground in the afternoon due to negative guidance from the USA. Across the pond, a critical statement by US President Donald Trump on the Middle East and the abrupt departure of Nvidia boss Jensen Huang because of an alleged espionage affair depressed the mood.

The DAX still closed up 0.4 percent at 26,774 points. On a weekly basis, there are currently signs of a gain of around three and a half percent.