According to the statement made by the Germany Federal Statistical Office (Destatis), bankruptcy filings in March increased by 13.2 percent compared to February. In February, there was an increase of 10.8 percent compared to the previous month.
IWH stated that increased production costs due to expensive energy and materials, increased personnel costs and significant increase in interest rates are a burden for many companies.
Bankruptcy filings of companies and partnerships in Germany rose by 24 percent to 959 last month, compared to March 2022, according to IWH's report. Thus, bankruptcies rose to the highest level since May 2020.
While the Russia-Ukraine war has led to higher energy costs in Germany, continued disruptions in international supply chains are making many intermediate goods imported for production in the country more expensive.
After the Covid-19 crisis caused significant job losses for many sectors, the energy crisis, lack of qualified employees and materials, and high inflation have negatively affected the German economy for months.
The monetary policy tightening of the European Central Bank (ECB) also increases the financing costs of German companies.
German unions are also demanding higher wage increases for workers in the face of unusually high inflation.
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