The German Federal Statistical Office reported that the number of companies going bankrupt increased by almost 24 percent in July.
The Bureau reported that 23.8 percent more companies filed for bankruptcy in July than in the previous month. The media indicate that this is a continuation of the unfavorable trend, as in June the number of bankruptcies increased by 13.9 percent.
– Despite a significant increase, we are not seeing a wave of corporate insolvency, which is so much talked about – assures Christoph Niering, president of the association of insolvency practitioners and restructuring advisers VID, quoted by Reuters. He explains that the actions of the state during the coronavirus pandemic have mitigated the difficult situation of companies. Currently, the increase in bankruptcies means “just normalization”. “The figures are even lower than in the economically strong year 2019,” says Niering.
According to him, many of the currently bankrupt companies had difficulties before the crisis caused by the COVID-19 pandemic. – Thanks to state aid during the pandemic and after the outbreak of war in Ukraine, the bankruptcy of these companies has only been delayed. We are now seeing a market correction when it comes to bankruptcies,” he added. According to the Federal Bureau of Statistics, the number of bankruptcies has been steadily increasing since August 2022. In May, German district courts announced 1,478 corporate insolvencies, 19 percent more than in the previous year. more than in the same month last year.
“Germany falls”. A German businessman devastated by the state of the economy
Incorrect climate policy, socialist approach to citizens, abandonment of the model of hard work in favor of “prosperity without effort” and lack of investment in digitization – these are the most serious accusations against the German authorities expressed in “Die Welt” of Wolfgang Rietzle.
“Germany is collapsing, and not just since the coronavirus pandemic or the war in Ukraine“, said Wolfgang Reitzle. The entrepreneur and manager referred to the increasingly weak productivity indicators and the simultaneous increase in labor costs. “Germany is no longer among the top ten countries in Europe in terms of gross domestic product per capita. We dropped out of the list of the 20 most competitive countries in the world,” said Reitzle, 74, who serves on the supervisory boards of several companies, including Axel Springer SE, the publisher of Germany’s largest newspapers – “Bild” and “The World”.
Source: Do Rzeczy
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
