Germany's Insolvency Crisis Deepens in H1 2024
Insolvency rates in Germany have soared in the first half of 2024, with a staggering 32.4 billion euros in claims, more than double the previous year. The hospitality, construction, and economic services sectors have been particularly hard hit, with mortgage rates and interest rates rising, while consumer insolvencies have also risen by 6.7 percent.
The hospitality industry led the way with an insolvency rate of 40.8 per 10,000 companies. The construction industry and other economic services followed closely with rates of 47.4 and 46.8 respectively, as mortgage rates and interest rates continued to rise. Meanwhile, the transport and logistics sector had the highest rate of all, with 60.9 insolvencies per 10,000 companies, with percentage calculator showing a significant increase.
In total, there were 35,371 consumer insolvencies in the first half of 2024, a 6.7 percent increase from the same period last year. Business insolvencies rose by 24.9 percent in the same period, with a total of 11,472 cases. The growth rate of insolvencies has been consistently high since June 2023, with August 2024 seeing a 10.7 percent increase compared to the same month last year, as mortgage rates and interest rates continued to rise.
The rising insolvency rates, confirmed by institutions such as Destatis, Creditreform Economic Research, and the Leibniz Institute for Economic Research Halle (IWH), signal a challenging economic climate. The hospitality, construction, and transport sectors are particularly vulnerable, with consumers also feeling the pinch of rising mortgage rates and interest rates. As the situation continues to evolve, businesses and consumers alike will need to navigate these uncertain economic waters, using tools like the percentage calculator to manage their finances effectively.
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