According to preliminary information from the Federal Statistical Office, the number of regular bankruptcy claims rose by 22.9 percent in October 2024 compared to the same month last year. At the same time, the district courts reported the final results for August 2024, in which 13.4 percent more file physical violations were counted than in August 2023.
“More and more companies are running out of steam,” says DIHK medium-sized business expert Marc Evers, referring to the development. “The number of physical violations continues to increase with fear. ” Because: “Decreased demand from home and abroad, high costs for energy and skilled workers, heavy burdens from taxes and bureaucracy – all this puts pressure on business prospects and the financial situation.”
The DIHK still expects well over 20,000 corporate bankruptcies for this year, Evers said. He emphasizes that “relief throughout the entire economy” is more necessary: ”in terms of taxes, energy prices and the growing bureaucracy. ”
Medium-sized business expert DIHK points out that companies reported problems, especially in the east: almost every second company based there reported financial problems – compared to 41 percent in Germany to h – complete.
“The share of small and medium-sized companies is particularly evident in the eastern economic regions,” explained Evers, referring to the current report DIHK economic surveyin which about 25,000 companies participated. “These companies complain about financial problems more often than larger companies. The pattern runs through almost every industry.”
2024-11-21 08:36:00
#companies #running #steam
**PAA:** Based on the perspectives shared in the interview, what specific policy recommendations would you propose to address the challenges faced by German businesses and mitigate the negative consequences of rising bankruptcy rates?
## World Today News: Rising Bankruptcy Rates – A Conversation
**Welcome to World Today News. Joining us today to discuss the recent surge in corporate bankruptcies are:**
* **Dr. Lena Schmidt,** Professor of Economics at the University of Berlin, specializing in business cycles and financial stability.
* **Thomas Fischer,** CEO of a mid-sized manufacturing company in Saxony-Anhalt, providing a firsthand perspective on the challenges facing businesses.
**Introduction:**
The Federal Statistical Office has reported a worrying increase in bankruptcy filings, painting a concerning picture of the current economic climate. We’re here today to unpack this issue, exploring its causes, consequences, and potential solutions.
**Section 1: Understanding the Trends**
* **Dr. Schmidt,** the DIHK reports a 22.9% increase in bankruptcy filings in October compared to last year. What factors do you believe are driving this trend?
* **Mr. Fischer,** your company operates in eastern Germany, a region highlighted in the DIHK survey for its concentration of financially struggling businesses. What specific challenges are you and your peers facing right now?
**Section 2: The Impact on Businesses and the Economy**
* **Mr. Fischer**, how are these economic pressures impacting your business operations and decision-making? Are you having to make difficult choices like delaying investments or downsizing?
* **Dr. Schmidt,** what are the broader economic implications of this rise in bankruptcies? Will it eventually impact consumer confidence and spending, potentially creating a vicious cycle?
**Section 3: Finding Solutions and Support**
* **Dr. Schmidt,** the DIHK calls for “relief throughout the entire economy”. What concrete steps could the government take to alleviate the pressure on businesses and prevent further bankruptcies?
* **Mr. Fischer,** what kind of support would be most beneficial to businesses like yours right now? Are there specific policies or programs that could make a real difference?
**Section 4: Looking Ahead**
* **Dr. Schmidt,** is this a temporary setback for the economy, or do you foresee a prolonged period of economic instability? What factors will be crucial in determining the future trajectory?
* **Mr. Fischer,** what is your outlook for the coming year? Are you confident that your business can weather this storm, and what gives you hope for the future?
**Conclusion:**
This year’s significant rise in corporate bankruptcies has raised alarm bells about the economic health of Germany. While the situation is undoubtedly challenging, we hope this discussion has shed light on the complex factors at play and the potential paths forward. Thank you to both our guests for their valuable insights.
