Germany records first decline in corporate insolvencies since February

Friday 14 August 2026 - 18:05

By: Azzat Manal

Germany records first decline in corporate insolvencies since February

German corporate insolvencies declined in May 2026, marking the first annual decrease since February, according to data from Germany’s Federal Statistical Office.

Local courts recorded 1,995 applications for corporate insolvency in May, down 2% from the same month a year earlier. Despite this monthly improvement, insolvencies remained elevated over the broader period. Between January and May 2026, the number of corporate insolvencies rose by nearly 5% year on year to 10,546 cases.

Creditors’ claims linked to these insolvencies were estimated at €15.4 billion during the first five months of the year, significantly below the €25.7 billion recorded during the same period in 2025. The lower figure was partly attributed to the larger number of major corporate failures recorded a year earlier, which had generated particularly high claims.

The statistics should also be interpreted with caution because insolvency applications are included in official figures only after an initial decision by an insolvency court. In many cases, the actual filing for insolvency occurs around three months before it appears in the statistics.

Between January and May, Germany recorded 29.8 corporate insolvencies for every 10,000 companies. The transport and storage sector experienced the highest rate, with 57.2 insolvencies per 10,000 businesses. Hospitality followed with 49.2 cases, while construction recorded 44 insolvencies per 10,000 companies.

Germany’s economy has been facing a prolonged period of weakness, contributing to continued pressure on businesses. Credit agency Creditreform expects the trend in corporate insolvencies to remain elevated and does not anticipate a significant turnaround before 2027. The Leibniz Institute for Economic Research Halle, which monitors insolvency developments on a monthly basis, also recently described the level of corporate insolvencies as exceptionally high.

Consumer insolvencies followed a somewhat different pattern in May. Their number fell by slightly more than 10% year on year to 5,926 cases. However, over the January-May period, consumer insolvencies increased by around 2%, reaching 32,093 cases.

The latest figures therefore point to a mixed picture for Germany’s insolvency landscape. While the May decline in corporate insolvency applications offers a modest sign of improvement, the elevated number recorded during the first five months of the year indicates that many companies continue to face significant economic challenges.