Less but bigger corporate insolvencies in Germany
The number of corporate insolvencies in Germany has continued to follow a longer-standing trend of decline during the first quarter of the year (Q1), official figures published on Tuesday by the Federal Statistical Office show.
According to the Wiesbaden-based government statisticians, a total of 5,020 companies filed for bankruptcy between January and March 2018. The figure marked a fall in the incidence of corporate insolvency by 3 percent compared to the same period last year.
The German statistical office attributes the ongoing positive trend to strong economic momentum which was sustained in spite of growing headwinds from an appreciation in the value of the euro and resurgent international protectionism.
Broken down by industry, the highest number of insolvencies in Q1 was recorded in the construction sector (902) followed by the trading sector (883), gastronomy (572) and freelance-, scientific- and technical service sector (511).
However, the figures show the total outstanding liabilities of insolvent firms at 7.8 billion euros (9.2 billion U.S. dollars) in Q1 2018 compared the 5.1 billion euros during the same period in 2017. The increase in the volume of capital at stake in bankruptcy procedures was attributed to the circumstance that more insolvencies of large companies were registered between January and March than had been the case in the previous year.