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Investing.com -- German business insolvencies increased by 12.2% in the first half of 2025 compared to the same period last year, according to final results released by the German statistics office on Thursday.
Local courts registered a total of 12,009 business insolvencies during the January-June period, highlighting the economic challenges facing Chancellor Friedrich Merz’s government as it attempts to stimulate growth in Europe’s largest economy.
Despite the rise in the number of insolvencies, the estimated volume of creditors’ claims decreased to approximately €28.2 billion ($32.97 billion) in the first half of 2025, down from €32.4 billion recorded in the same period of 2024.
The statistics office explained that this apparent contradiction - fewer monetary claims despite more insolvencies - occurred because "more economically significant companies filed for insolvency in the first half of 2024 than in the first half of 2025."
The data suggests that while more businesses are failing in 2025, they tend to be smaller enterprises with less financial impact on creditors compared to the larger corporate failures seen in the previous year.
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