According to the institute, 4,573 companies declared bankruptcy within three months.
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The German economy is on the brink. Thousands of jobs at risk
This is the highest result since the third quarter of 2005 and a higher level than during the COVID-19 pandemic or the global financial crisis in 2009. The scale of the problem indicates serious challenges facing Europe's largest economy.
Bankruptcies had a direct impact on the labor market. About 54,000 are at risk. jobs — this is the highest level since the third quarter of 2020.
The largest share in this number belongs to the processing industry, which has remained particularly sensitive to the deterioration of the economic situation for several quarters.
Particularly disturbing data came in for March. This month, the number of bankruptcies increased by 17%. compared to February, reaching 1,716 cases.
Compared to the average for March in pre-pandemic years, this means an increase of as much as 71%. Experts emphasize that Such high monthly values were last recorded in mid-2005.
Small companies in the most difficult situation
The report shows that The deteriorating situation of smaller enterprises is primarily responsible for the increase in the number of bankruptcies. They are most often unable to cope with rising operating costs and economic slowdown.
As a result, it is the segment of small and medium-sized companies that is becoming the main source of the current wave of bankruptcies.
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Experts do not have good news for the coming months. Leading indicators suggest that in the second quarter of 2026 the number of bankruptcies will remain very high and may even approach the levels recorded in March.
According to economists, this means continued pressure on enterprises and the situation will not improve quickly.
Weak economy and global risks
Companies' problems are part of a broader economic context. After two years of recession, the German economy recorded only symbolic growth of 0.2% in 2025.
The government in Berlin lowered the GDP growth forecast for 2026 to 1.0%, which further confirms cautious expectations for the future.
The situation is also influenced by global factors, including geopolitical tensions and the conflict in the Middle East. Rising oil and gas prices, trade disruptions and inflationary pressures are putting additional strain on businesses.
