welt.de
German Corporate Insolvencies Surge 24.3% in 2024
Germany experienced a 24.3% increase in corporate insolvencies in 2024, totaling 22,400, primarily due to economic stagnation, weak domestic demand, and global trade slowdown, resulting in €56 billion in creditor losses and 320,000 job losses.
- What is the primary cause of the sharp rise in German corporate insolvencies in 2024, and what are the immediate consequences?
- In 2024, Germany saw a 24.3% surge in corporate insolvencies, reaching 22,400—the highest since 2015. This is attributed to economic stagnation, declining innovation, weak domestic demand, and sluggish global trade, resulting in a significant increase in bankruptcies.
- How do the rising insolvencies affect various sectors of the German economy, and what are the contributing factors beyond the immediate economic downturn?
- The increase in insolvencies, building on a 22.9% rise in 2023, reflects broader economic weaknesses. High energy and labor costs, bureaucracy, and weak economic outlook contribute to the crisis, potentially reaching 2009-2010 levels of over 32,000 insolvencies. This impacts creditors (approx. €56 billion in losses) and creates job losses (320,000).
- What are the long-term implications of this insolvency wave for the German economy, and what structural reforms are needed to address the underlying issues?
- The insolvency wave exposes structural issues in the German economy. The manufacturing sector, while having higher equity and lower debt than other sectors, shows worrying trends like high loss-making companies and low profit margins. This, coupled with the automotive industry's struggles due to globalization shifts and transformation challenges, points to a difficult future unless restructuring and adaptation occur. The retail sector faces similar structural challenges and a bleak consumer sentiment.
Cognitive Concepts
Framing Bias
The narrative is structured to highlight the severity of the crisis. The use of phrases like "Insolvenzwelle" (insolvency wave) and the repeated mention of rising numbers and high financial losses emphasizes the negative aspects. The selection of specific examples like Galeria Karstadt Kaufhof further strengthens this negative framing. Headlines and subheadings consistently reinforce this perspective.
Language Bias
The language used is generally factual, but terms like "regelrechte Insolvenzwelle" (real insolvency wave) and "bedrohlichen wirtschaftlichen Entwicklungen" (threatening economic developments) carry strong negative connotations. While accurate, these phrases could be replaced with more neutral wording such as "significant increase in insolvencies" and "challenging economic conditions".
Bias by Omission
The article focuses heavily on the negative aspects of the German economic crisis and the rise in insolvencies. While it mentions the impact on jobs and creditors, a more in-depth exploration of government support measures or potential positive developments could provide a more balanced perspective. The article also does not explore potential external factors contributing to the economic downturn besides the global trade slowdown.
False Dichotomy
The article doesn't explicitly present false dichotomies, but the repeated emphasis on negative economic trends might implicitly create a sense of inevitability or lack of viable solutions. A more nuanced perspective acknowledging potential mitigating factors or alternative strategies could be beneficial.
Sustainable Development Goals
The article highlights a surge in insolvencies in Germany, leading to significant job losses and economic downturn. This directly impacts decent work and economic growth, as businesses fail, employees lose their jobs, and overall economic activity declines. The increase in bankruptcies, particularly in manufacturing and retail, further underscores the negative impact on economic growth and employment.