Tuesday, 18 November 2025
Corporate insolvencies in Germany are expected to continue rising amid ongoing structural and economic pressures, according to the latest outlook from international credit insurer Atradius. The organisation forecasts that the number of insolvencies could reach up to 30,000 cases in 2026, compared with an estimated 25,000 cases in 2025.
More significant than the increase in insolvency filings is the expected rise in the volume of bad debts. Atradius anticipates that losses from unpaid invoices could climb to €65 billion in 2025, up from approximately €56 billion in 2024, marking the highest level recorded in recent years.
Frank Liebold, Country Director Germany at Atradius, described the situation as a “U-shaped crisis” rather than a short-term downturn. According to him, many of the risks facing German companies will remain for an extended period. These include persistently high energy and raw material costs, weak domestic demand, elevated interest rates, supply chain constraints, competitive pressure from low-cost imports, and geopolitical uncertainty.
“These structural challenges are affecting nearly every sector,” Liebold said. “Automotive manufacturers and suppliers, the steel and metal industries, and construction are among those under the greatest strain.”
Despite the difficult environment, Atradius notes that insolvency proceedings in Germany have become more transparent and more professionally managed in recent years. The increasing use of digital tools, improved coordination between stakeholders, and new legal frameworks—such as the StaRUG restructuring procedure—have supported a greater focus on business recovery rather than liquidation.
“Our goal is not simply to manage the end of a company’s operations, but to help return viable businesses to a stable path wherever possible,” Liebold said.
Atradius highlights the value of early warning indicators for suppliers and creditors, including changes in payment behaviour, requests for extended terms or higher credit limits, management turnover, and declining staff morale. For medium-sized companies, the insurer recommends leveraging professional credit assessments, consolidated ratings, and risk analysis to better manage potential exposures.
Retention of title arrangements, robust general terms and conditions, and cooperation within supplier pools can also help reduce losses and support recovery efforts.
Claudia Kaiser, Director of Risk Services for Germany, Austria and Switzerland, emphasised that alongside the challenges, there remain positive prospects for German industry, particularly in high-technology fields.
“Germany still has many innovative and competitive companies, and the transformation under way in areas like artificial intelligence, robotics, chip design and quantum technologies offers long-term growth potential,” Kaiser said. “The connection between research, science and industry remains strong, and this foundation continues to support innovation.”
